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I Item #: 5B Meeting Date: Dec 20, 2013 Type of Business: EDC To: Economic Development Commission From: Jim Ericson, City Administrator Item Title/Subject: Review Unobligated TIF Balance Sheet The City presently has four TIF Districts—three which were approved in the 1980s and one which was approved more recently for the Medtronic development. The older three TIF districts operate under different statutory requirements which allowed for the pooling of increment which could be spent outside of the districts. These three districts are scheduled for decertification beginning with TIF District #1 at the end of this year. TIF Dist #1 is the largest of the three older districts—it includes the business parks along County Road 10 by McDonalds and the Mermaid. TIF District #3 is the Sysco development, and that decertifies at the end of 2014. TIF District #2 includes scattered parcels along County Road 10, and it decertifies at the end of 2015. Refer to the attached map. Discussion: TIF dollars fund the City's economic development programs and the staff that oversees the programs. The recent land acquisitions (Roberts and Taiko, and the Premium Stop gas station years ago) were funded using the unobligated increment. The City's Street and Utilities Reconstruction Program also uses TIF dollars as part of the approved funding package. With the decertification of District #1 and subsequent decertifications of Districts #3 and #2, we thought it would be helpful to review the existing unobligated TIF balance for the Commission and identify the expenditures already planned for the remaining funds. (Any dollars that are left unspent at district close will be used to help offset costs associated with the Street Program.) Finance Director Beer put together a spreadsheet which details the TIF balances for your review. The spreadsheet reflects year-end balances excluding TIF District #1, which will exhibit a zero balance. The City's Capital Improvement Plan (CIP) includes a few projects which will derive funding from the remaining TIF collections, which will amount to $2,165,530. This amount excludes the increment generated from the Medtronic development, which can only be spent on administrative expenses. The projects presently identified for funding through TIF include reconstruction of Mustang Drive ($500,000), County Road 10 Gateway/entryway features ($300,000), intersection improvements at County 10 and County H ($30,000), gateway and median enhancements in 2015 ($425,000) and completion of the County 10 trailways in 2015 ($300,000). The total estimated cost of these projects comes to $2,055,000.