Agenda - Council - 09/12/1995 - Laserfiche WebLink

Home

I I I '1 I I I I I I I I I CASE ~ANOKA ELECTRIC COOPERATIVE TIF DISTRICT By: Ryan R. Schroeder Notification: Those notifiqd of this case were Anoka Electric Cooperative, Anoka-Hennepin School District gl 1 ajad Anoka County. Background: Some time a.g9, the City began exploring the advantages and disadvantages of placing the Anoka Elec~c Cooperative (AEC) project within a tax increment district (TIF). A year ago, staff recommended not going forward with such due to unfavorable legislation. At that time, cremating a TIF district would have resulted in a 10Ss of local government aid (LGA). Becat~se of laws passed in 1995, this is no longer the case. We have been working with the development attorneys at the firm of Kennedy and Graven in order to c4mply with now existing law. It is their view of the project that the AEC facility meets the tests for an economic development district. AEC has confkmed that 85% of their project will be for uses other than general office (i.ei'research and development, manufacturing and warehousing and the like). The economic development district will receive eight ~ears of increment. This project W, ould not have gone forward but for tax increment assistance. The City will be using tax itlcrement proceeds to construct the sewer and water lines as well as Sunworxt Drive. The f¢ture water tower and any wells in the area will also be funded with tax increments. AEC could not have used this location without access to these facilities. We had previqusly placed the AEC Energy Park within the development district (wherein TI1~ expenditu~'es can be made but wherein TIF revenues are not received unless it also is within a TIF ~strict). The creation of an economic development district at this time allows the City's development arm to receive project revenues directly.from the'AEC facility and future industri!~l concerns in the area. These revenues will be received by the TIF district itself as well a~ the economic development account (10% of net increment). It is expected that AEC TIF ~,evenues will reimburse infrastructure costs experienced by the development district due to the AEC project (sewer, water, roadway, ~-ailway, site improvements, soil correction and the like). As is required by law, the County and School District have been informed of this proposal. No negative comments from either jurisdiction have been received. Council ActiOn: MXfion to adopt Re§olution g95-09~° creating an economic development district Review~ed City Admim.~stra~tor Finance Offidlterl CC: 09/12 l!5 /jmt #l ,,gql