HomeMy WebLinkAbout[04c] TIF Decertification, 1-4 yhflUsIkAlted
crrY of ST.JOSEPH Council Agenda Item 4(C)
MEETING DATE: December 6, 2012
AGENDA ITEM: TIF 1-4 Decertification—Resolution approving the decertification of TIF
1-4 St.Joseph Development(VicWest Corporation)and closing fund 156
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: EDA recommended decertifying
TIF 1-4 at their Nov.28,2012 meeting.
PREVIOUS COUNCIL ACTION: None
BACKGROUND INFORMATION: The City Council established tax increment financing(TIF) 1-4
St.Joseph Development in June 2002. The district is in project area 1. The district was established for
economic development to be eligible for 9 years of tax increments. The tax increments began is May
2004 and ended in December 2012. Since the tax increments are finished,TIF 1-4 can be decertified
effective 12/31/12. There remaining tax increments in the City's funds along will be turned over to
Stearns County for redistribution to the County, City and School District.
Along with the TIF decertification,the City fund 156 can be closed to the EDA fund 150. Staff
recommends the fund closure as of 12/31/12.
BUDGET/FISCAL IMPACT: Excess TIF returned to Stearns County Appx. $1,500
ATTACHMENTS: RCA TIF Decertification
Resolution 2012-019 Approving the decertification of TIF 1-4—St.
Joseph Development,LLC.
Nov. 15,2012 Memorandum sent to the EDA
REQUESTED COUNCIL ACTION: Adopt Resolution 2012-019 Approving the decertification of
TIF 1-4—St.Joseph Development and closing TIF fund to the EDA
fund,effective 12/31/12.
a
CITY OF ST.JUSI+.PI1
Memorandum
To: Cynthia Smith-Strack, St. Joseph EDA
CC: Judy Weyrens,Administrator
From: Lori Bartlett,Finance Director
Dater November 15,2012
RE: TIF 1-4 Decertification(Vicwest—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.
RESOLUTION NO.2012-019
RESOLUTION APPROVING THE DECERTIFICATION OF
TAX INCREMENT FINANCING DISTRICT
1-4—ST. JOSEPH DEVELOPMENT,LLC
WHEREAS,on June 27,2002 the City of St.Joseph created its Tax Increment Financing District No. 1-4
within its Municipal Development District No. 1 (the project); and
WHEREAS,as of the date hereof all bonds and obligations to which tax increment from the district have
been pledged have been paid in full defeased and all other costs of the Project have been paid;and
WHEREAS,the City wishes to decertify the District pursuant to Minnesota Statutes, section 469.177,
subdivision 12 effective on December 31,2012;and
WHEREAS,the City desires by this resolution to cause the decertification of the District after which all
property taxes generated within the District will be distributed in the same manner as all other property
taxes;and
WHEREAS,any increments unspent of the District will be returned to Stearns County for redistribution
to all taxing authorities,and the City TIF fund will be closed to the EDA fund for financial reporting.
NOW THEREFORE,BE IT RESOLVED by the City Council that the City's staff shall take such
action as is necessary to cause the County Auditor of Stearns County to decertify the District as a tax
increment district and to no longer remit tax increment from the District to the City.
Adopted this day of ,2012
Rick Schulz,Mayor
ATTEST:
Judy Weyrens,Administrator
This page intentionally left blank