11-28-2012 Council Agenda - Laserfiche WebLink

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��ttle uanada MAYOR Bill Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 ADMINISTRATOR www.ci.little- canadainn.us Joel R. Hanson MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: November 23, 2012 RE: Authorize Increase in Interfund Loan Amount — TIF District 5 -1 Attached is a resolution increasing the interfund loan authorized for TIF District 5 -1 (St. Jude Medical & Viking Drive) from $750,000 to $840,000. This increase is necessary due to the timing of St. Jude's repayment of Phase III costs as outlined in our development agreement with them. This amount was billed in late 2011 and payment was received in early 2012. However, to ensure our accounting records are accurate, we need to pass this resolution retroactive to November 1, 2011. It should be noted that we initially authorized $200,000 in October of 2007. That amount was increased to $750,000 in June of 2011 as we concluded the Phase III acquisitions and commenced the landscaping improvements along County Road B -2. With this action and the payment made by St. Jude in early 2012, the interfund loan balance at the end of 2012 will consist of the $400,000 of value we assigned to this fund for the relocation of Viking Drive project plus any accrued interest on that amount. It reflects the potential sale price of our remaining parcel at the corner of Viking Drive and Rice Street. By keeping this balance in this fund, TIF generated by our two parcels in the future can help us to recover some of the land costs thereby freeing up other sources of funding. Staff recommends approval on the interfund loan increase with the source of funding to be the same as initially designated in 2008. 1