02/07/2011 Council Packet - Laserfiche WebLink

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1. It would allow the EDA to collect increment from TIF District No. 1 -10 through the end of 2023. This extension matches the period when the TIF Bonds will be paid off. 2. After February 1, 2011, all tax increment from this district must be used only to pay debt service on the Improvement Bonds or the TIF Bonds (or any future refunding bonds). 3. During the extended period, expenditures are exempt from the pooling and five year rules (Section 469.176, subd. 3), and from the requirement that increment must assist only manufacturing and related uses (Section 469.176, subd. 4c). These exemptions are necessary to permit the use of increment for the TIF Bonds and Improvement Bonds. The purpose of this extension is to provide revenues needed to replace the special assessments that are not being paid on the tax - forfeited property, and the lost tax increments from developments that have not yet occurred on the property. The City will continue vigorous efforts to develop Legacy at Woods Edge, and over the long term remains confident that the redevelopment will provide tax base and amenities for both residents of the City and the broader region. If assessments and tax increments from the Property itself become available, those revenues will reduce the need for the additional increment from TIF District No. 1 -10. Comparable Legislation The legislature has long recognized the need to address unique problems in tax increment districts through special legislation, especially where the problems are created by economic slowdown or unique development and redevelopment needs. Some recent examples include: 2010 Laws, Ch. 216, § 55: City of Oakdale; extend duration of existing redevelopment district by 8 years. 2009 Laws, Ch. 88, Art. 5, § 15 City of Minnetonka; extend duration of existing renewal and renovation district by 7 years. 2009 Laws, Ch. 88, Art. 5, § 19 City of St. Louis Park; extend duration of existing renewal and renovation district by 7 years. 2006 Laws, Ch. 259, Art. 10, § 15 City of Faribault; extend duration of an existing district by 2 years 2006 Laws, Ch. 259, Art. 10, § 16 City of Brooklyn Park; extend duration of economic development district by 5 years.