HomeMy WebLinkAbout[03e] 2019 Annual TIF Report Preparation
Council Agenda Item 3e
MEETING DATE: April 6, 2020
AGENDA ITEM: 2019 Annual TIF Reports Preparation
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE/COUNCIL RECOMMENDATION: N/A
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
2019, 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. The four TIF reports to be completed by Northland Securities have been reported
in previous years. As a result, the fee for the 2019 reporting is $990 per TIF.
BUDGET/FISCAL IMPACT: $3,960.00
ATTACHMENTS: Request for Council Action –TIF Reports Preparation
Northland Securities Quote
REQUESTED COUNCIL ACTION: Consider accepting consulting services for TIF reports
preparation for TIF 2-1, TIF 2-3, TIF 3-1 and TIF 4-1.
April1,2020Sentviaemail:lbartlett@cityofstjoseph.com
LoriBartlett,FinanceDirector
CityofSt.Joseph
75CallawayStreetE.
St.Joseph,MN56374
RE:AnnualTIFReportingtoOfficeofStateAuditor
DearLori:
ThepurposeofthisletteristoofferyoutheservicesofNorthlandPublicFinanceto
assistyouwiththeprocessofmakingplansforthecompletionandsubmissionofthe
mandatedreportsfortaxincrementfinancing(TIF)districtsforyearendingDecember
31,2019.
WeconsidertheannualreportingprocesstobeagreattimetoreviewexistingTIF
districtsforpotentialopportunities,includingpoolingoffundsandreviewof
outstandingobligations.Weviewandundertaketheprocessasmuchmorethanan
accountingaccessandfillingoutaformonyourbehalf.
Ifyouareinterestedinourservices,pleasecontactme.Reportswillbemadeavailable
fromtheOfficeoftheStateAuditor(OSA)andwillbeduetotheOSAbyAugust1,
2020.
ThereareseveralwaysthatNorthlandcanassistyouinthereportingprocess.
1.Northlandwillprepareandsubmitthereportsonyourbehalf.
2.NorthlandwillprovidetechnicalassistancetohelpCitystafforyour
accounting/auditfirmtopreparethereports.
3.NorthlandwillreviewandcommentonreportspreparedbytheCity.
Theremainderofthisletterdescribestheseserviceoptionsingreaterdetail.These
servicesqualifyasadministrativeexpenseandthecostcanbepaidfromtaxincrements,
subjecttotheauthorizationsinyourTIFplans.
FullService
Inthisoption,Northlandwillprepareandsubmitreportsinaccordancewithstatutory
requirements.Northlandwillalsopreparethesummarystatementforpublication.The
Cityisresponsibleforproviding2019financialstatementsforeachdistrict,
documentationonallplanmodificationsmadein2019,supportingdocumentationonall
revenuesandexpendituresandcopiesofTIFPlansanddevelopmentagreements.The
costofthisserviceprovidedbyNorthlandhasnotchanged,andisasfollows:
150SouthFifthStreet,Suite3300,Minneapolis,MN55402
Main:(612)851-5900/Direct:(612)851-4964/Email:tomdal@northlandsecurities.com
MemberFINRAandSIPC|RegisteredwithSECandMSRB
AnnualTIFReporting
April1,2020
Page2
Aflatfeeof$990perdistrictappliestodistrictswherethe2018reportwasprepared
byNorthland.
Aflatfeeof$1,380perdistrictappliestodistrictswherethe2018reportwasnot
preparedbyNorthland.
Aflatfeeof$1,960perdistrictwherefiscalyear2019isthefirstyearofreporting.
ThesefeesassumethatallworkisperformedinNorthland’soffice.Ifon-siteworkis
needed,theadditionalfeewillbecalculatedandagreedtobytheCitybeforemakingthe
sitevisit.
TechnicalAssistance
Northland’sserviceinatechnicalassistancecapacitywillbedeterminedonacase-by-
casebasis.Thescopeofworkandfeewillbedeterminedbythenumberofdistricts,the
statusofpastreportingandtheexpertiseofstaffpreparingthereports.Basedon
experience,thecostofthisserviceistypically$1,200(orless)coveringalldistricts.
ReviewandComment
NorthlandwillreviewandcommentonTIFreportspreparedbytheCityforaflatfeeof
$210perdistrict.
AuthorizationwithOfficeoftheStateAuditor
IfyoudeterminetohaveNorthlandassistyouwiththefilingofyourreports,theCity
willneedtoauthorizeNorthlandtofileitsformswiththeOSA,ifpriorauthorizationis
notalreadyinplace.YoumaydosobycompletingtheSAFESAuthorizationForm
whichisattachedtothisletter.
NextSteps
Welookforwardtoworkingwithyoutocreatethereportingservicethatbestmeets
yourneeds.Pleasecontactmeifyouareinterestedinoneoftheserviceoptions.Wecan
alsodiscussadifferentserviceapproachthatbetterfitsyourneeds.Icanbereachedat
(612)851-4964ortomdal@northlandsecurities.com.
Sincerely,
TammyOmdal
ManagingDirector
Attachments(1)