Agenda - Council - 10/08/2019 - Laserfiche WebLink

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CC Regular Session 7. 2. Meeting Date: 10/08/2019 By: Sean Sullivan, Community Development Information Title Adopt Resolution # 19-245 Approving Authorization to Add Back Parcels Into TIF District # 14 Purpose/Background: Purpose: The purpose of this case is to authorize Staff to begin a process to correct a tax collection error within Tax Increment Finance (TIF) District #14. Taxes have been collected, but new increment generated from increased values has not been captured for all eligible parcels. Original base value continues to be distributed to City, County, and School District. Please note that this is NOT an establishment of a new district. This is a correction to a district already in place. Background: City Staff was in the process of reviewing current and future revenue for TIF District 14 and identified numerous tax parcels that should have been included in the district 'capture'. The impetus behind this error originates with a 4-year knock down period. This essentially states that if there are no eligible activities (new construction) on a parcel, it is no longer calculated as new increment captured within the district. Parcels can be added back in once an eligible activity occurs, as is the case with this request. See the memo from Ehlers financial/municipal advisors for detailed information. Notification: No formal notification is required. Observations/Alternatives: These parcels should be added back to the district to maximize the amount of TIF generated by the district and to fulfill prior, current and future obligations within the District. Of key note, the City has a TIF Agreement with Affinity at Ramsey and this parcel needs to be added back to the TIF Calculation to be able to meet this obligation. Another significant obligation proposed to be funded by this district is the reconstruction of Bunker Lake Boulevard between Ramsey Boulevard and Armstrong Boulevard, an obligation under a Joint Powers Agreement (JPA) with Anoka County. Ehlers, the City's Financial Advisor for TIF Projects, has drafted a memo outlining the process to add back parcels into the district. This process includes issuing a Writ of Mandamus that would allow Anoka County to bring the parcels back into the district with the appropriate base values for the year qualifying activity occurred. Qualifying activity includes land acquisition, demolition, site improvements, and/or road installation. In 2014, Ehlers completed a study that identified over $39 Million in TIF eligible reimbursements within the district that encompasses a majority of The COR Area. Eligible activities include, but are not necessarily limited to, include land acquisition, future site improvements and reimbursement of public improvements installed prior to the establishment of the district. Maximizing the revenue captured in TIF