HomeMy WebLinkAboutRes 03-043; Decertification of Kenzie TIFCITY OF ST. ANTHONY
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RESOLUTION APPROVING DECERTIFICATION OF KENZIE
TERRACE TAX INCREMENT FINANCING DISTRICT
(HENNEPIN COUNTY NO. 1950)
BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota
(the "City"), as follows:
1. Recitals. The Housing and Redevelopment Authority of the City of St.
Anthony (the "HRA") pursuant to the authority contained in Minnesota Statutes, Section
469.174 to 469.179 (the "Act') has established a tax increment financing district under the Act
designated as Kenzie Terrace Tax Increment District (Hennepin County No. 1950) (the
"District'). As required by the Act the city Council approved the establishment of the District
by the HRA. It has been proposed that the HRA request Hennepin County to decertify the
District pursuant to Minnesota Statutes, Section 469.177, subd. 12.
2. Decertification of the District. The proposal that the HRA request
Hennepin County to decertify the District is hereby approved.
Adopted this ofg- day of 9iZM-L� 2003.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City M ager
EHLERS
& ASSOCIATES INC
O To: Roger Larson, City of St. Anthony
C From: Rebecca Kurtz & Jim Prosser, Ehlers & Associates
Lu Date: June 18, 2003
G I Subject: Decertification of Kenzie Terrace Tax Increment Finance District
It is recommended the City of St. Anthony take action to decertify the Kenzie Terrace Tax
Increment Finance District. The District was established in 1982 to redevelop the blighted
site located in the Southwest corner of the Village. Funding for the redevelopment project
was through the issuance of Tax Increment Bonds issued in 1985 (these bonds were paid off
in 1993).
Presently, the District serves as a funding source for the City Hall/Community Center Bonds
issued in 1995.
There are several reasons for decertifying the Kenzie Terrace TIF District:
Retire the debt. The bonds issued to finance the redevelopment are callable in
February 1, 2004, and the City has adequate cash to pay the outstanding debt,
therefore paying off all debt associated with the City Hall/Community Center
Building.
o Savings of interest. By calling the bonds, interest expense of $235,315 will
be saved.
• Restrictions on the use of funds. Under the current law, other than for the City
Hall/Community Center Bonds, the increment from the District cannot be used for
other purposes outside of the TIF District boundaries.
• Lessen the tax impact. Decertifying the District will place the property back on the
City's tax roles. This will provide a significant increase to the City's tax capacity,
and the City's expenses will be spread across a larger tax base. Therefore, the tax
burden will decrease, and the impact of future debt will not be as significant.
• Reduces impact of public facilities bond. Decertification of Kenzie reduces the
tax impact of the costs associciated with the building of the new Public Works and
Fire Station buildings.
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive Phone: 651-697-8516 Fax: 651-697-8555
Roseville, MN 55113-1105 rkurtz@ehlers-inc.com