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85 <br /> MEMORANDUM <br /> TO: Mayor and Members of the City Council <br /> Michael Morrison, City Manager <br /> FROM: Jerry Gilligan <br /> DATE: . July 19, 2000 <br /> RE: Establishment of TIF District No. 5 <br /> At its meeting on July 25' the St. Anthony HRA and the St. Anthony City Council will <br /> be considering the elimination of certain parcels from the existing Apache Plaza tax increment financing <br /> district and the establishment of a new tax increment financing district containing these parcels. <br /> The new tax increment financing district is proposed to include the tax parcels which <br /> contain Apache Plaza Shopping Center, and the adjacent property consisting of the site of the former <br /> New Market store and the Taco Bell. Since a portion of these parcels are presently included in a tax <br /> increment financing district established by the HRA in 1992 it will be necessary to remove these parcels <br /> • from the existing tax increment financing district prior to including them in the new tax increment <br /> financing district. <br /> The tax increment financing plan for the new tax increment financing district authorizes <br /> the expenditure of tax increment revenue to be derived from the district to pay costs related to the <br /> redevelopment of the property in the district. Such tax increment may be used to pay such costs <br /> directly, to pay debt service on bonds issued to finance such expenditures or to reimburse the <br /> redeveloper of the property for payment of such redevelopment costs. <br /> It is important to note that by the approval of the tax increment financing plan is not a <br /> commitment by the City or HRA to provide tax increment financing assistance for the redevelopment of <br /> Apache Plaza Shopping Center. Such commitment requires a further action of the HRA approving the <br /> execution of a redevelopment agreement with the redeveloper of such property under which agreement <br /> the HRA agrees to provide tax increment assistance for the redevelopment of the shopping center to <br /> the redeveloper. The HRA is not being asked to take such action on July 25`h <br /> The tax increment financing plan to be considered by the HRA and City Council <br /> provides the new tax increment financing district is a"redevelopment district" under the TIF Act. The <br /> basis for this determination is the report as to the condition of buildings in the district prepared by an <br /> outside consultant. This report is attached as an exhibit to the financing plan. <br /> • <br /> DORSEY & WHITNEY LLP <br />