Agenda - Planning Commission - 11/07/2013

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Regular Planning Commission Meeting Date: 11/07/2013 By: Tim Gladhill, Community Development 5. 6. Information Title: Adopt Resolution of Comprehensive Plan Compliance for Tax Increment Finance District No. 2 Modification Purpose/Background: On December 31, 2013, Tax Increment Financing (TIF) District #2 will become decertified. As part of the decertification process, the final budget of the TIF Plan needs to be amended to reflect actual tax increment received. TIF District #2 was created on June 30, 1986 and was most recently modified on December 13, 2011. The District was created to capture new increment created by future development within the District. The use of said funds is outlined in the attached TIF Plan. When a TIF District is created or modified, the Planning Commission shall review the plan or modification to determine if they are in compliance with the City's Comprehensive Plan. As noted above, the modification is exclusive to a modification to the TIF District #2 Budget. There are no planned land use changes to the TIF District. A more detailed background of Tax Increment Financing can be found in the attached memo from the League of Minnesota Cities. Notification: No notification is required. Observations/Alternatives: Alternative #1 — Adopt resolution as presented. The proposed TIF Modification appears to be in line with the City's Comprehensive Plan as it relates to land use. This modification will allow the TIF District to decertify as originally planned, and funds collected within the district will now follow the standard property tax distribution to Anoka County, Anoka -Hennepin School District and the City of Ramsey. Alternative #2 — Do not adopt the resolution. Staff does not recommend this alternative. Under applicable Minnesota Statutes, this District cannot be extended beyond December 31, 2013. The District has exhausted the statutory lifespan for this type of TIF District. In order to adhere to statutory reporting requirements, the TIF Plan needs to be modified in order to properly decertify. Alternative #3 — Adopt the resolution with amendments. Staff does not see a need to amend the proposed resolution as presented. Funding Source: Preparation of the resolution is being handled as part of normal Staff duties. Recommendation: Staff recommends that the Planning Commission adopt Resolution #13-11-186 finding that a modification to the Development Program for Development District No. 1 and a modification to the Tax Increment Financing District No. 2 conform to the general plans for the development and redevelopment of the City. Action: