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<br /> <br /> <br /> <br />14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762-6300 • www.ci.hugo.mn.us <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />TO: Honorable Mayor Tom Weidt and Members of the City Council <br />FROM: Ron Otkin, Finance Director <br />SUBJECT: Resolution Decertifying Tax Increment District No. 1-2 <br />DATE: For the City Council Meeting of July 20, 2020 <br /> <br /> DESIRED COUNCIL ACTION <br /> <br />Adoption of Resolution Terminating TIF District No. 1-2 and Directing County Auditor to Decertify the District <br /> HISTORY <br /> <br />On April 16, 2007, the City Council adopted a resolution establishing a redevelopment tax increment district for the <br />downtown area and approved a tax increment financing plan. Washington County certified the district on November <br />24, 2010. Shortly after the district was created the “Great Recession” began and real estate values declined. As a <br />result, this district has not receive any increment from its creation through calendar year 2019. <br /> <br />As per state statutes, if no activity takes place in the first five years of a redevelopment district (the Five-Year Rule) and <br />there is no outstanding debt, then the district must be decertified. However, due to the recession, the legislature <br />extended the Five-Year Rule to an eight-year period, which ended in 2018 for this district. <br /> <br />Pursuant to Minn. Stat. Section 469.1763, subd. 4, the district must be decertified as there is no outstanding debt or <br />contractual obligations that are paid with tax increment. <br /> <br />Staff has prepared the attached resolution to terminate Tax Increment District No. 1-2 effective December 31, 2020, <br />and direct the county to decertify it. <br /> RECOMMENDATION <br /> <br />Staff is recommending the City Council approve a Resolution Terminating TIF District No. 1-2 and Directing County <br />Auditor to Decertify the District Effective December 31, 2020. <br /> ATTACHMENTS <br /> <br />Resolution <br />