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City Council Regular Meeting Minutes November 13, 2001 Page 4 01 Developers agreement with Super Valu 2 (Permits City to bill Super Valu for deficits). 3 Use Kenzie Terrace surplus increment. 4 5 Steinman indicated that, in 2005, there would be a deficit in the Cub Foods District, which will 6 need to be covered in 2005. He added that, in 2006, they might be able to apply the remedies of 7 pooling in order to cover that deficit. 8 9 Councilmember Thuesen asked how strong the Short-fall Agreement was with Cub Foods. 10 Gilligan responded that he thought it was quite unquestionable, yet felt that they would probably 11 have a discussion about it in the future with Super Valu. Steinman added that it was uncertain as 12 to whether they would be allowed to use an accumulated fund balance after a district de-certifies. 13 14 Councilmember Sparks asked Mornson if this analysis would be a component in the Financial 15 Strategies. Mornson stated that it would be included. 16 17 ❑ Apache/Hellickson Dental 18 Annual Tax Increment- 2001 $22,369 19 Annual Tax Increment- 2002 $11,833 20 Pay-As-You-Go note- payment ($11,833) 21 Annual Surplus/Deficit $_ 0_ Debt Paid Off(Extended 4 Years) 2010 District Expires 2019 24 25 ❑ Chandler(#58) 26 Annual Tax Increment- 2001 $247,104 27 Annual Tax Increment- 2002 $166,309 28 Supports TIF Budget $1,900,000 29 District Expires 2011 30 Funds Available through 2011 $1,768,406 31 Deficit ($131,594) 32 Revision is necessary: 33 34 Steinman indicated that Chandler was a much more flexible TIF District than Kenzie because it 35 was certified a couple of years later. Therefore, Steinman indicated, they would be able to 36 amend Chandler and use some of the excess funds to do some other projects. 37 38 Mornson indicated that their first option would be to collect on the short-fall from Super Valu. 39 40 Councilmember Thuesen asked at which point tax-increment legislation would stabilize. 41 Steinman indicated that this year's impact of tax-reform legislation on tax-increment was the 42 most direct hit that the tool has ever taken. He added that they do not know when it might 43 stabilize. 10 Gilligan added that legislation has made it much more restrictive over the last few years to create 46 TIF Districts. He stated that the districts that have the most flexibility are the districts that were 47 created between 1982-1990, like Chandler.