HomeMy WebLinkAbout[04e] TIF RefundC['I'~ cNt r; r. Jc~ rcc .
MEETING DATE: July 17, 2008
Council Agenda Item 4 e
AGENDA ITEM: TIF Refund -Requested Action: Approve refunding $20,624.97 to
Stearns County for excess tax increment for TIF 1-4
SUBMITTED BY:
Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: EDA recommended approving the
refund
PREVIOUS COUNCIL ACTION: None
BACKGROUND INFORMATION: The City receives tax increments from Stearns County in June and
December of each year while a TIF district is certified. A TIF district is a specified list of property parcels
located in a project area. The project area may be the same as the district or a much larger area than
the district. In the case of TIF 1-4, St. Joseph Development, there are 7 parcels listed in the project area,
but the TIF district only includes one parcel. The other six parcels have the opportunity to be
considered for TIF should they have a project that qualifies and is approved by the EDA and City Council.
Due to the cost and time of establishing a project area, when application is made the EDA and City have
typically looked at the geographic area and determined if others could benefit from TIF in the future, if
so a larger district is established. This is the same process that was used for the Downtown TIF district.
Establishing a larger TIF district does not guarantee any TIF rights, rather the tool is available.
When TIF 1-4 was certified, Stearns County identified all the properties in the TIF district as TIF projects
so the City received excess tax funds. When the City became aware of the error a letter was sent to
Stearns County requesting that they correct their error and identify only the one eligible parcel as a TIF
project. Stearns County corrected the error in their system so only 1 parcel is identified for tax
increment, but did not bill the City for the refund of overpayment. The City is required to refund the
over-payment back to Stearns County for distribution to all taxing jurisdictions. The amount of the over-
payment totals $20,624.97. The attached sheet shows the over-payment break-down by parcel.
BUDGET/FISCAL IMPACT: $20,624.97 (Fund 156)
ATTACHMENTS: Letter to Stearns County, Parcel break-down of tax increment
received
REQUESTED COUNCIL ACTION: Approve refunding $20,624.97 to Stearns County for excess tax
increment received for TIF district 1-4.
TIF 1-4 St. Joseph Development
Over-payment of tax increment
:Parcels received T!F for, but should .not have (project area, rtiot n Districtii
per tax stmt
84.53470.240 939.32
84.53470.241 842.60
84.53470.242 4,718.11
84.53470.243 1,441.23
84.53470.244 1,427.25
84.53470.245 11,330.98
20,699.49
less: County Admin Fee (74.52)
Increment over-paid to the City 20,624;97
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. CITY OF ST. ~S~PH
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~rrr.cityoFstjoseph.com. - .
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.August 1, 2005
• ~
Mr. Jerry Roering
Steams County Auditor-Treasurer ~
,q~{m;~a~ 705 Courthouse Square; Room 138
)~Y Weyn;ns St. Cloud MN 56301
M RE: TIF District #110 -Clarification on affected properties
i
Rid~ord C«-bom
Counabrs Dear Jerry: 1 i
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AI Rnssier .This letttr is intended to clarify the .tax parcels within TIF District #110. The following)
Ross R;eke parcels should be removed from TIF District #110:
Renee Syn-erretz
p,~e ~,~ 84-53470-240
84-53470-241 i
84-53470-242
84-53470-243
84-53470-244 i
84-53470-245
Conversely, the only parcel within TIF District #110 is the following:
84=53470-230 St. Jce Development LLC
If you have any questions after reviewing the enclosed please feel free to contact me at 3~,20-
363-7201. ~
Sincerely,
CITY OF ST. JOSEPH
(i'~-
udy a ens ' ~
istrator ~
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cc: Cynthia Smith Strack, St. Joseph EDA
File
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Zs College Avenue North PO Box 668 $oint. Joseph, Minnesota 56374'.
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