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<br />CITY COUNCIL WORK SESSION <br />Topic Report: Decertification of TIF Districts 1 & 4 <br />By: Sean M. Sullivan, Economic Development <br />Coordinator <br /> <br /> <br />Background: <br /> <br />On February 23,2009 Staff presented a memo to the City Administrator discussing the <br />potential decertification ofTIF Districts Nos. 1,2,4 and 10. The memo identified TIF <br />Districts 1 and 4 as potential candidates for decertification. Generally speaking, TIF <br />districts allowthe city to capture the tax dollars normally levied by the Anoka County <br />and the School District in addition to the Ramsey portion to fund eligible expenses within <br />each TIP and Development District. Districts that have completed budgeted activities <br />need to be decertified or have their budgets amended to reflect additional expenditures. <br /> <br />Financed activities within TIF Districts 1 and 4 will be fully paid by the end of2009. <br />Decertifying these districts on December 31, 2009 would result in approximately <br />$476,621 in general fund tax revenue for 2010. Development and redevelopment <br />activities in these districts that were identified in the TIF Plan are complete but there are <br />other projects within the City that could utilize TIF funds if the budgets are amended to <br />include them. Attached are the Cash Flows for each of the aforementioned TIF Districts. <br />In addition to the Cash Flows, a calculation showing the approximation of what the 2010 <br />General Fund levy impact is for the two districts proposed to be decertified. The <br />estimated fund balances at the end of 2009 for TIF Districts 1 and 4 total $1,747,829. If <br />no new projects are identified for these districts the City is required to decertify the <br />districts before year's end and return the accrued tax increment ($1,747,829) for <br />redistribution. If an eligible project is identified, the budget could be amended and the <br />City could utilize the funds for these two districts. <br /> <br />One project that could be considered would be the expansion of Armstrong Boulevard, <br />and specifically, the purchase of the Oasis Market and associated right-of way. Since <br />2005, the City of Ramsey has worked on the design of Armstrong Boulevard in <br />preparation for a reconstruction project. This project has changed over the years but if the <br />reconstruction is to occur south of Sunwood Drive, it will require the realignment of <br />Armstrong Boulevard at Trunk Highway 10. This realignment, and the need for ponding <br />for a reconstruction project would require a total acquisition of the property located at <br />14550 Armstrong Boulevard (the Oasis Market). In November of2008, the City Council <br />directed Staff to continue with the land acquisitions necessary for the entire <br />reconstruction project and redirect our efforts prioritizing Armstrong Boulevard as an <br />interchange rather than an at grade crossing with the railroad and Highway 10. This <br />scenario also requires a total acquisition of the Oasis Market. The property owner <br />negotiated with the Anoka County Highway Department and came to terms for a total <br />price of$I,030,000 plus approximately $120,000 for relocation costs. These costs would <br />be an eligible TIF expense and it could be financed through the cash balances remaining <br />in the aforementioned TIF districts. <br /> <br />Another option would be to let the districts run to their statutory maximum and to amend <br />the budgets to spend the projected fund balances for 2011 and 2013 ($4,880,188) on TIF <br />