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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. THIS PAGE INTENTIONALLY LEFT BLANK