Agenda - Council - 06/10/2014 - Laserfiche WebLink

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Our Mission: Toworktogethertoresponsilygrow ourconemunilyand toprozriIt quality,cost-effective, and of&cfentgovernmentsetyices CC Regular Session Meeting Date: 06/10/2014 By: Diana Lund, Finance Information Title: Approve Policy for the Reimbursement of Land Proceeds and Tax Increment for Tax Increment Financing Area #14-COR 4. 8. Purpose/Background: Purpose: To establish a policy that outlines how land proceeds and tax increment will be applied when funds are received to pay back the City for the funds it has expended in the COR area. The Tax Increment Financing (TIF) analysis by Ehlers for the COR area outlined the total land sale proceeds and tax increment that are projected to be earned over the life of the TIF No. 14 District. This same analysis also outlined the total costs that the City has expended in this area. At the work session of May 13, 2014 the City Council was in agreement that the city should recoup all of the expenses that they have into the COR area through the available land sales and future tax increment. Staff was directed to prepare a policy that outlines how the land proceeds and tax increment will be distributed when received (policy is attached). The first item to be reimbursed will be the internal loans with the water and sewer funds that were established when the COR land was purchased. Observations/Alternatives: Option #1: Adopt Policy as currently written. Staff recommends this option based on the direction given at the council work session of May 13, 2014. Option #2: Adopt current policy with revisions noted Option #3: Don't adopt policy. Not recommended, as staff believes that the City needs a consistent basis for the distribution of these funds, to accomplish the goal of reimbursing the City for the initial land acquisition. Funding Source: Future land proceeds and tax increment generated in the COR area. Recommendation: Staff recommends the adoption of the policy entitled: Policy for the Reimbursement of Land Proceeds and Tax Increment for TIFArea # 14 (COR). This policy will provide the formal documentation that outlines reimbursement guidelines when funds are received to pay back the city for expenses in the COR area. Action: Motion for Council to adopt policy entitled: Policy for the Reimbursement of Land Proceeds and Tax Increment for TIFArea #14 (COR) Policy for the Reimbursement of City Funds-COR Area Attachments Form Review Inbox Reviewed By Date Kurt Ulnch Kurt Ulnch 06/04/2014 10 31 AM Form Started By Diana Lund Started On 05/15/2014 08 43 AM Final Approval Date 06/04/2014