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' 25 <br /> EHLERzi <br /> & ASSOCIATES INC <br /> ® To: Roger Larson, City of St. Anthony <br /> From: Rebecca Kurtz &Jim Prosser, Ehlers &Associates <br /> W Date: June 18, 2003 <br /> Subject: Decertification of Kenzie Terrace Tax Increment Finance District <br /> It is recommended the City of St. Anthony take action to decertify the Kenzie Terrace Tax <br /> Increment Finance District. The District was established in 1982 to redevelop the blighted <br /> site located in the Southwest corner of the Village. Funding for the redevelopment project <br /> was through the issuance of Tax Increment Bonds issued in 1985 (these bonds were paid off <br /> in 1993). <br /> Presently, the District serves as a funding source for the City Hall/Community Center Bonds <br /> issued in 1995. <br /> There are several reasons for decertifying the Kenzie Terrace TIF District: <br /> • Retire the debt. The bonds issued to finance the redevelopment are callable in <br /> February 1, 2004, and the City has adequate cash to pay the outstanding debt, <br /> therefore paying off all debt associated with the City Hall/Community Center <br /> Building. <br /> o Savings of interest. By calling the bonds, interest expense of$235,315 will <br /> be saved. <br /> • Restrictions on the use of funds. Under the current law, other than for the City <br /> Hall/Community Center Bonds, the increment from the District cannot be used for <br /> other purposes outside of the TIF District boundaries. <br /> • Lessen the tax impact. Decertifying the District will place the property back on the <br /> City's tax roles. This will provide a significant increase to the City's tax capacity, <br /> and the City's expenses will be spread across a larger tax base. Therefore, the tax <br /> burden will decrease, and the impact of future debt will not be as significant. <br /> • Reduces impact of public facilities bond. Decertification of Kenzie reduces the <br /> tax impact of the costs associciated with the building of the new Public Works and <br /> Fire Station buildings. <br /> LEADERS IN PUBLIC FINANCE <br /> 3060 Centre Pointe Drive Phone: 651-697-8516 Fax: 651-697-8555 <br /> Roseville, MN 55113-1105 rkurtz @ehlers-inc.com <br />