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5 <br /> CITY OF HUGO <br /> EDA <br /> MEMORANDUM <br /> TO: EDA <br /> FROM: Rachel Simone, Planner <br /> SUBJECT: TIF Certification <br /> DATE: October 6, 2010 for the EDA Meeting of October 11, 2010 <br /> On July 22, 2009, the request to certify the TIF district was delivered to Washington <br /> County. The EDA decided to request certification at that time, because there is a three <br /> year time limit to use buildings that have been demolished to qualify. In order for the city <br /> to reimburse itself for the purchase of the properties and the demolition, the district <br /> needed to be certified within three years of the date that the property was deemed <br /> substandard. <br /> Staff was expecting to hear back from the County on the certification this summer. Staff <br /> contacted Washington County in August and they stated that they did not receive the <br /> certification request. The request was also sent to the State of Minnesota and they were <br /> aware of the request. <br /> Over the last month staff has been meeting with Springsted to come up with options on <br /> where to go from here. There were three topics of discussion: <br /> 1. Talk to Washington County and ask them to certify the TIF district on the date of <br /> the original request. This would not require a public hearing and we would keep <br /> the same base value as what was proposed with the TIF Plan. <br /> If certification happens after June 30`h, 2009, the base value is at pay 2010. Staff <br /> has been in contact with City Assessor Frank Langer and he stated that the values <br /> for pay 2011 have gone down from pay 2010. Since the values went down for pay <br /> 2011, the City would not collect increment for that year. The 26 year time clock <br /> does not start if we do not collect increment. So the City would not collect <br /> increment until the values go up in the district or significant development occurs <br /> in the district. However, if the City were to have the County certify the TIF <br /> district on the original date, the 5 year time clock to use TIF monies would start <br /> around June 2010. <br /> 2. Re-request certification for the TIF district. In this case we would use the pay <br /> 2011 tax values and it would give us another year to use the increment on <br /> development projects. This option will not be feasible because we need to use the <br />