Agenda - Council - 10/11/2011 - Laserfiche WebLink

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CC Regular Session Meeting Date: 10/11/2011 By: Aaron Backman, Administrative Services 2 Information 5. 8. Title: Adopt Resolution Calling for a Public Hearing by the City Council on Proposed Modifications to TIF Districts 1 & Background: Tax Increment Financing is the ability to capture and use most of the increased local property tax revenues from new development within a defined geographic area for a defined period of time. The type of development or redevelopment that is assisted through TIF must serve a public purpose. These purposes include, but are not limited to, expanding the tax base, providing job opportunities, and redeveloping blighted areas. Over the past 25 years the City of Ramsey has utilized Tax Increment Financing (TIF) to encourage certain types of development or redevelopment that would not normally occur without the use of TIF. The City created TIF District No. 1 in 1985 and TIF District No. 2 in 1986 with both being Redevelopment TIF Districts. Both TIF Districts 1 and 2 were last modified in December of 2009. This was done by the City to modify the budgetary authority to allow to the City to effectively utilize the TIF Increment collected by the City. Since that time, it is estimated that the districts will generate additional increment above what was authorized in the modifications in 2009. In order for the City to capture these TIF funds for use on various projects (e.g. Municipal Ramp Expansion, Northstar Rail Station,The Residence at the COR), the City needs to modify the TIF District budgets accordingly. Attached is a Resolution Calling for a Public Hearing by the City Council on Proposed Modifications to TIF Districts 1 & 2. These modifications would be discussed at the proposed public hearing on December 13, 2011. There is a modification to the Development Program for TIF District 1 and there are modifications to the TIF Financing Plans for for Districts 1 and 2. It should be noted that time is of the essence - -TIF District 1 expires on December 31, 2011 and TIF District 2 expires on December 31, 2013. Per state statute the City is required to undertake several steps prior to the public hearing. Project information (property ID numbers, legal descriptions, project description, maps, but /for statement, and sources and uses) needs to be submitted to the Anoka County Board at least 45 days before the hearing. Fiscal /economic implications of the modifications are submitted to the School Board Clerk and the County Auditor at least 30 days before the hearing (on or before November 11). On December 1st the Ramsey Planning Commission is projected to review the modifications to determine if they are in compliance with the City's Comprehensive Plan and adopt a resolution approving the modifications. Notification: The City is required to publish the TIF public hearing notice with a map at least 10 days but not more than 30 days prior to the hearing. It is projected that the notice would go to the Anoka County Union the morning of November 30, 2011. Recommendation: It is recommended that the Ramsey City Council call for a public hearing regarding the modifications to Tax Increment Financing Districts 1 and 2 to be held on December 13, 2011. Funding Source: EDA Fund/TIF- eligible expenses.