Agenda - Council - 05/27/2014 - Laserfiche WebLink

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Our Mission: Toworktogethertoresponsilygrow ourconemunity and toprozriIt quality,cost-effective, and of&cfentgovernmentseivices CC Regular Session Meeting Date: 05/27/2014 By: Diana Lund, Finance Information Title: Public Hearing: Plan Modification for Tax Increment Financing District No. 14 6. 1. Purpose/Background: Purpose: The Tax Increment Financing Plan for Tax Increment Financing (TIF) District No. 14 is being modified to remove parcels from the TIF district (from 333 parcels to 91 parcels), update the budget to reflect current Office of the State Auditor TIF reporting requirements, update the TIF district parcel list due to replatting of some parcels and to reflect upon the Special Legislation that was granted in 2010 for the creation of this TIF district. At the worksession of May 13, 2014, Ehlers and Associates presented an update of the TIF 14 (COR) analysis. The goals of this study was to make sure that there was enough TIF generated to reduce the size of the TIF district as appropriate, repay the City/HRA for its investment, be able to pay on the pay-as-you-go TIF obligation for the Residence at the COR Apartments and determine if the fiscal disparities calculation method should be changed at this time (currently outside the district). The study indicated that yes, the size of the district can be reduced by 242 parcels and still generate more than enough in tax increment for the city not only to recoup its costs over the life of the district, but also generate TIF in 2015 to be available to pay on the Residence at the COR Apartment TIF note obligation. The fiscal disparities calculation method will be brought forward at a later date after more commercial development has occurred in the COR area. The revised TIF plan modification has been structured around these goals. Council passed Resolution #14-04-073 at its regular City Council meeting of April 22, 2014 to schedule a Public Hearing on the proposed adoption of a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 14. Notification: The Anoka School Board of Commissioners and School District #11 have been notified of the hearing as required by the State of Minnesota, and have had time to comment prior to the hearing. Comments were received from Anoka County in regards to parcel identification numbers and they have been corrected within the plan. It is required by the State of Minnesota to hold a public hearing for comment whenever modifications are proposed to a Tax Increment Financing District and it was properly noticed in the Anoka Union. When a TIF District is created or modified, the Planning Commission must review the plan or modification to determine if they are in compliance with the City's Comprehensive Plan. As there are no planned land use changes tot he TIF district, the Planning Commission adopted Resolution #14-05-078 at its meeting of May 1, 2014, finding that the modifications to TIF District No. 14 are in compliance with the City's Comprehensive Plan. Observations/Alternatives: Alternative #1 - Adopt Resolution #14-05-094 as presented. Alternative #2 - Do not adopt the resolution. Staff does not recommend this alternative. Based on the intended use of TIF funds fom the District, the parcels proposed for removal are not necessary to remain in the district. Alternative #3-Adopt the Resolution #14-05-094 with amendments. Staff does not see a need to amend the proposed resolution as presented. Funding Source: TIF District No. 14 Recommendation: Staff recommends that Council adopt Resolution #14-05-094 adopt TIF Plan Modifications for TIF District No. 14. Action: Motion to adopt Resolution #14-05-094 Adopting a Modification to the Tax Increment Financing Plan for Tax Increment F Resolution 14-05-094 TIF NO. 14 Plan Modification nanc ng District No. 14. Attachments