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Memo <br />To: Mark Casey — Executive Director <br />From: Stacie Kvilvang - Ehlers <br />Date: October 8, 2013 <br />Subject: Early Decertification of TIF District No. 3 —Apache Plaza I (Cub Foods) <br />On March 23, 1993, the City and its Housing and Redevelopment Authority (HRA) <br />established the above referenced redevelopment TIF district for the development of the Cub <br />Foods. This district has a 26 year term from the date of receipt of the first tax increment, <br />which was 1998. Based upon this, the district would terminate on December 31, 2023, <br />The City/HRA issued taxable TIF bonds in the amount of $1,170,000 for the project. The <br />bonds were paid in full on February 1, 2013. State Statute dictates that when the obligation <br />(bonds, pay-as-you-go TIF notes or interfund loans) are paid in full, the district must be <br />decertified and any remaining tax increment in the account returned to the County for <br />redistribution to the City, County and School District. <br />The estimated cash balance in the account as of October 1, 2013 is approximately <br />$324,288. Of this, the City's portion that would be redistributed back is approximately <br />$134,000. It should be noted that the City will need to continue reporting on this TIF district <br />to the Office of the State Auditor even though it is being decertified. This is due to the <br />outstanding interfund loan from this District to TIF District 3-5 (Apache Plaza). The City <br />"pooled" these funds to TIF District 3-5 to pay off the Fannie Mae loan. When these dollars <br />are returned to this District, they can be redistributed for other redevelopment projects <br />under the legal pooling authority. If no future projects are warranted, then the City can <br />return these funds as well to the County for redistribution to the City, County and School <br />District. <br />Please contact me at 651-697-8506 with any questions. <br />EHLERS <br />LEADERS IN PUBLIC FINANCE <br />www.ehlers-inacom <br />Minnesota phone 651-697-8500 3060 Centre Pointe Drive <br />Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122 <br />toll free 800-552-1171 <br />