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0 <br />DATE: April 26, 2005 <br />TO: Mike Mornson, City Manager <br />FROM: Roger Larson, finance Director <br />ITEM: HELLICKSON ADDITI®rN[FII+ PROJECT <br />In July of 1993, the St. Anthony L-Iousing and Redevelopment Authority (II.R.A.) entered into a <br />redevelopment agreement to upgrade an area of the City known as the H.el lickson Addition. <br />The intention of the IT.R.A. and the City was to assist with redevelopment of the property located at <br />3901 Silver Lake Road. The objectives of the project included: <br />A. Securing prompt renovation of the property which at the time <br />included a portion, which was not in use. <br />R. Secure additional employment opportunities. <br />C. Increase the valuation of the property which decreases the <br />tax burden. <br />Pursuant to the contract, the H.R.A. issued a Limited Revenue Tax Increment Note in the auount of <br />$130,000.00 at an interest rate of 9% per annum. Under the terms of the agreement, the H.R.A. has <br />completed its payments to the developer from tax increment monies generated by the District (the <br />note matured February 1, 2005 and final payment was made from the December 2004 TIF <br />settlement). <br />At the March 101 work session, staff reviewed with Council the options of keeping the District <br />open or decertifying it and returning the parcel to the tax base. Jerry Gilligan '.from Dorsey & <br />Whitney confirmed that the City is entitled to re -coup 25% of the TIP expenses incurred which <br />amounts to $55,697.00. <br />During the tenure of the TIP, St. Anthony charged the District 10% administration fees for a total of <br />$28,324.68. Since the annual increment is $28,000.00, the City will re -coup its maximum eligible <br />TIF expenses in 2005. <br />With no further debt or ability to use the increment beyond 2005, it is prudent to decertify the <br />District and return it to the tax rotes. The desertification will increase our Tax Capacity by $21,486. <br />Recommendation: <br />The Housing and Redevelopment Authority approve resolution #05-006, decertifying Ramsey <br />County "fax Increment District 44 - Apache 11 (Hellickson #1-I-1). <br />