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• • AGENDA ITEM 6 -A STAFF ORIGINATOR: Mary Divine CITY COUNCIL DATE: June 27, 2011 TOPIC: Consideration of Resolution No. 11 -63 Approving 2011 Minnesota Laws, Ch. 112, Article 11, Section 18 Relating to a Tax Increment Financing District in the City of Lino Lakes VOTE REQUIRED: 3/5 BACKGROUND: The City sought special legislation from the state legislature that would extend the duration of Tax Increment Financing District No. 1 -10 through 2023 and devote the tax increment to payment of debt service on the Legacy at Woods Edge improvements and the 35W interchange. The special legislation was approved and signed into law. The special legislation includes the following provisions: 1. It allows 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. Increment from TIF District No. 1 -10 would provide approximately $171,000 /year to protect our city residents from higher property taxes until the property is back on the tax roles. This will reduce the impact on residents by approximately $20 /year (based on a $200,000 home). 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. This resolution takes formal action for City Council approval of the special legislation. RECOMMENDATION • Staff is recommending approval of Resolution No. 11 -63