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City Council Regular Meeting Minutes June 22, 2010 Page 4 1 A. Resolution 10-045; Authorizing an Increase in the Principal Amount of hrterfund Loans 2 for Tax Increment Financing District No. 3-5. 4 Ms. Stacie Kvilvang, Ehlers & Associates, addressed the City Council and provided background 5 information and a brief overview of the Fannie Mae Loan repayment and amended interfund loan 6 for Tax Increment Financing (TIF) District No. 3-5 as outlined in the June 22, 2010 7 memorandum. Ms. Kvilvang reviewed the proposed resolution authorizing an increase in the 8 principal amount of interfund loans for TIF District No. 3-5. She advised that approval is 9 contingent upon HRA approval, noting that the HRA meeting is scheduled following this 10 meeting tonight. 11 12 City Attorney Gilligan indicated he has worked with Ms. Kvilvang to prepare the resolution 13 presented to the City Council tonight. 14 15 Mayor Faust requested information on the total market value currently in comparison to the 16 value when the development process began in the subject TIF District. Ms. Kvilvang replied that 17 the value of the parcels that have been developed on was approximately $5 to $6 million in 2005. 18 The current value is approximately $90 to $96 million. The valuation has increased 19 approximately $1500% from 2005 to today. 20 21 Councilmember Stille noted there is also a synergy captured outside of the TIF district with 22 businesses such as Wendy's, Tires Plus, and office condos. 23 24 Motion by Councilmember Stille, seconded by Councilmember Roth, to approve Resolution 10- 25 045; Authorizing an Increase in the Principal Amount of Interfund Loans for Tax hicrement 26 Financing District No. 3-5. 27 28 Motion carried unanimously. 29 30 B. Chandler TIF District Update. 31 32 Ms. Kvilvang presented an update on the Chandler TIF District as outlined in the June 22, 2010 33 memorandum. Ms. Kvilvang reviewed background information on the City Council approval to 34 decertify the TIF District one-year early in December of 2010. She advised that due to levy 35 limits imposed by the Legislature for 2009-2011, staff is recommending not to decertify the 36 District early. It is estimated that the City will receive approximately $200,000 in TIF in 2011. 37 Based upon preliminary direction given to staff to keep the General Fund Property Tax Levy at 38 the same level as 2010, the City would need to transfer approximately $69,000 from the 39 Chandler TIF District to the Bond Fund for payment on the road improvement bonds. This 40 transfer would decrease the overall road levy by the same amount. This would not only allow 41 the Council to maintain its goal of no tax increase/impact from the Emerald Park financing, but 42 would also allow Council flexibility to either lessen the tax impact to residents or provide dollars 43 for capital or service needs. In addition, in 2011 the City will have the remaining $130,000 in 44 the District to utilize for future road projects and/or housing and redevelopment projects. 45