HomeMy WebLinkAbout[06a] TIF Consultant
EDA Agenda Item 6a
MEETING DATE: April 19, 2017
AGENDA ITEM: 2016 Annual TIF Reports Preparation
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: N/A
PREVIOUS EDA ACTION: None
BACKGROUND INFORMATION: Annually the EDA and City must report a summary of the
activity in each tax increment fund to the State Auditor whether or not the projects are completed. For
2016, the reports include six reports for the following TIF projects:
TIF 1-4 St. Joseph Development, LLC
TIF 2-1 Millstream Shops and Lofts
TIF 2-2 St. Joseph Meat Market
TIF 2-3 Bayou Blues and Alley Flats
TIF 3-1 Central MN Credit Union Call Center
TIF 4-1 Fortitude Senior Housing
TIF 1-4 has been decertified; however, the City must report annually until the forgivable loans for the
Meat Market and Bello Cucina are paid off in 2021.
Staff has been working with Northland Securities on modifications of the Bayou Blues TIF project. In
those discussions, Northland Securities offered to assist with the annual TIF reports as the projects and
TIF law are getting more complicated. City staff has completed the TIF reports for the past couple years,
MDG was contracted prior to staff taking the reports over. The consultant quote is $1,380 per TIF in
2016; $990 each TIF in following years.
As stated, staff completed the reports when there were a couple TIF projects outstanding. Now that there
are six TIF projects and more complicated, staff recommends acceptance of Northland Securities offer for
all TIF projects, except TIF 1-4 St. Joseph Development and TIF 2-2 Meat Market. These two reports are
straight forward and less expensive for staff to complete. TIF 1-4 is expensed out of the EDA fund since
the TIF has been decertified. TIF 2-2 does not have room in their budget to incur the consultant fees. TIF
2-2 decertifies in 2022.
BUDGET/FISCAL IMPACT: For Information Only
ATTACHMENTS: Request for EDA Action –TIF Reports Preparation
Northland Securities Quote
REQUESTED BOARD ACTION: Consider accepting consulting services for TIF reports preparation
for TIF 2-1, TIF 2-3, TIF 3-1 and TIF 4-1.
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