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City Council Regular Meeting Minutes November 13, 2001 _ Page 3 • 1 are paid for with tax-increment proceeds: Community Center portion of the building(paid for by 2 the Kenzie Terrace tax-increment), and Apache Plaza. 3 4 Morrison stated that the bad news was that they have a reduction in revenues: He added that the 5 good news was that there is additional increment beyond the bond payment to pay for the debt, 6 which means that they have the ability to transfer from a healthy Tax-increment District to a 7 non-healthy district to pay off the debt. 8 9 Mornson added that, when they negotiated the tax-increment package with Super Valu, they 10 negotiated a Short-fall Agreement which states that, if there is ever any short-fall in any year 11 with the amount of increment that they need to pay off their debt, Super Valu is liable for that 12 debt. Momson added that would be their first recourse. 13 14 Momson indicated that the only decision to make this evening was to determine if they wanted 15 to include the purchasing of the Hardee's property and the Exhaust Pro property, as well as the 16 Phillips 66 Gas Station in a redevelopment pattern. If so, Morrison continued, then they needed 17 to hold a hearing,put the properties in their budget, and then they would have the ability to 18 purchase the properties and remove them. 19 20 Mayor Pro Tem Horst asked what needed to happen in terms of time-line. Momson stated that 21 Paul Steinman, Springsted, Inc. would come forward to review his TIF Cash Flow Analysis. • 22 23 Steinman stated that they came in after major tax-reform and examined the four active Tax- 24 increment Districts in the City if St. Anthony and estimated, to the best of their abilities, where 25 they are going from this point forward, given tax-reform. 26 27 R_ eview of the four active TIF Districts: 28 Kenzie Terrace (#1950) 29 Annual Tax Increment- 2001 $452,590 30 Annual Tax Increment- 2002 $423,628 31 Community Center Bond Payment ($246,588) 32 Annual Surplus $177,040 33 District Expires 2008 34 Debt Paid Off 2010 35 In 2008, remaining Fund Balance is $2,086,755 36 paid to County (City receives 37 approximately 25-30%back). 38 39 ❑ Apache/Cub Foods (#9-G) 40 Annual Tax Increment-2001 $231,279 41 Annual Tax Increment-2002 $122,084 42 Apache Bond Payment ($205,922) 43 Annual Deficit ($83,838) 44 1 S`Year of Deficit 2005 1045 Debt Paid Off 2013 46 Cumulative Deficit in 2013 ($734,657) 47 District Expires 2019