HomeMy WebLinkAbout[05c] TIF DecertificationCA- M--. OF S&Tq..40N.,rH
Memorandum
To: Cynthia Smith- Strack, St. Joseph EDA
CC: Judy Weyrens, Administrator
From: Lori Bartlett, Finance Director
Date: November 15, 2012
RE: TIF 1 -4 Decertification (St. Joseph Development)
As you are aware TIF 1 -4 is scheduled to expire in 2012. According to the development plan for
TIF 1 -4, St. Joseph Development, the tax increments for the district would be paid for nine (9)
years or until the Pay As You Go Note was paid off. In reviewing the tax records St. Joseph
Development received increment payments from May 2004 through December 2012 (nine years).
As can be seen from the attached TIF payment summary, the increments received covered the
entire debt incurred for the tax increment project. The TIF had excess increments estimated to be
$45,000. The excess increments were spent on restaurant equipment and meat market expansion
to stimulate the economy in 2011. Since the project has exhausted the maximum years for TIF,
no further increments will be received from Stearns County.
At this time TIF 1 -4 can be decertified. Per Minnesota State Statutes, any excess tax increments
will be returned to Stearns County to be redistributed to all taxing jurisdictions of the district. As
of November 15, 2012, TIF 1 -4 has a balance of $826.17. Final allowable administrative costs
will be deducted from this balance to determine the excess tax increment collected. Once the
decertification is approved, the remaining balance will be returned to Stearns County.
I am requesting St. Joseph EDA to consider recommending to the City Council decertification of
TIF 1 -4, St. Joseph Development, effective December 31., 2012 with any remaining excess tax
increments to be returned to Stearns County.
If you have any questions or need additional information please feel free to contact me.
Sincerely,
CITY OF ST. JOSEPH
on Bartlett
Finance Director
Encl.
City of St. Joseph Minnesota
Tax Increment Financing District No.
TIF District #110
Note Payment Schedule
Payment to:
Minnwest Bank
Note Details
1-4 St. Joe Development LLC 4Vicwestj
PID - 84- 53470 -230
PROJECTED BUDGET
ACTUAL PAYMENTS WILL DEPENT ON
ACTUAL TIF AMOUNTS RECEIVED!
Amount of Note (starting principal) 643,000
Note Dated 1- Aug -02
Annual Payment Date 15 -Dec
Interest Rate 7.50%
`Development Agreement notes: not to exceed $643,000 in principal payments.
* 2004 Note: The increment was not collected in May due to an error in the Auditor's Office. The County fixed
the error and submitted payment for 2004 October 29, 2004.
2005 Note: The payment for the May Tax Settlement was not received by May 15. Therefore the increment
could not be paid.
2008 Note: The city discovered the entire project area classified in the TIF district by the County. The city sent a letter to the county on 8 -1 -05 to
correct the error to remove 6 PIDs from the district. The city over collected $20,699.49 for the 6 parcels. The city did not return the
money to the county to redistribute to all the taxing jurisdictions until June 2008.
2008 Note 2: The discovered the 2005 county administrative charge of $74.52 was not deducted TIF received from the County. Therefore, the city
overpaid Minnwest. The city deducted $74.52 from the July 2008 TIF disbursement to Minnwest.