08-08-2007 Council Agenda - Laserfiche WebLink

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e y v% � _.25S °azala 515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener, Members of the City Council FROM: Joel R. Hanson, City Administrator DATE: August 3, 2007 RE: Creation of TIF District 5 -1 MAYOR Bill Blesener COUNCIL Rick Montour Barbara Alain John Ice's Michael McGraw ADMINISTRATOR Joel R. Hanson With the potential expansion of St. Jude Medical, Inc. on the site owned by the Roseville School District, the opportunity exists to create a tax increment financing district. This district would be classified as a "Renewal and Renovation District ". (Attachment 1 is a publication prepared by Ehlers & Associates, Inc. relating to TIF Basics that explains this district as well as other useful TIF information in more detail.) Additionally, we could also create a "scattered site" district by combining the Viking Drive/Rice Street area with the main project along County Road B2. By doing so, we could avoid the duplication of costs and create a little pool of money that may prove useful in the Viking Drive area to address issues such as the re- alignment of the Arby's /Bally's Drive area with the intersection of Viking Drive and Minnesota. Attachment 2 is a schedule of events that would govern the creation of this new TIF district. There are a number of steps we have to follow to complete this process. The first is the adoption of a resolution calling for a public hearing on the proposed establishment of the development program. (Attachment 3 - I will have the time corrected to 7:30 in the final copy.) We also need to conduct a study of the buildings in the proposed district to document compliance with the coverage and substandard requirements as required by statute. There are also a number of other administrative steps we need to take in order to prepare the specific plan, many of which will require an expenditure of funds. To address the advancement of funds, St. Jude Medical, Inc. has agreed to advance those costs (estimated at $27.000) with the understanding that should the district be created and their project proceed to completion, then those funds would be repaid from available TIF revenues. The present value of revenues from Phase I are estimated at almost 51.5 million after allowing for fiscal disparities. Phase II could generate another $1.15 million if constructed by 2014. (See Attachment 4 for St. Jude's letter of financial commitment and the TIF projections.)