1d Stipulation for TIF 2-1CTFYOF
CHAN E
7700 Market Boulevard
PO Box 147
Chanhassen. MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Bulldlnll Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Englnesrinli
Phone: 952227.1160
Fax:. 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Pa~ & Resraatlon
Phone: 952.227.1120
Fax:. 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Plannlnll &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
,,v.,:w. ci.chan~sen.m n.us
TO:
Mayor & City Council
FROM: Todd Gerh~, City Manager
DATE: June 3, 2003
SUB J:
Approve Stipulation of Selllement and Order for Judgment
Regarding Tax Increment Financing District 2-1
Attached you will find a Stipulation of Settlement and Order for ~udgment in
response to the State Auditor's Notice of Non-Compliance concerning Tax
Increment Financing District No. 2-1. This settlement resolves the State
Auditor's alleged violations and is a com?romise of the disputed claims that the
City and EDA should not have ~c.~ved a TIF payment for this district in 1998.
The settlement allows the city to keep the first half TIF payment and requires
that we repay the county its share of the second half taxes, plus interest, totaling
$144,553.87.
Staff recommends approval of this settlement as a fair and reasonable
compromise to the claims against the city/EDA.
1. Stipulation of Settlement and Order for Jodgment
The City of Chanhaesen, A growing comrnur, it:,, v,,iin c'5.~r, ,a.,<es. q,..a!,?,, s:hools, a charming do;','ntown, thriving businesses, winding trails, and beautiful parks. A g~t plac~ to live. ,,,ark,. and play.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF CARVER
FIRST JUDICIAL DISTRICT
CASE TYPE: OTHRR CIVIL
In the Matt~ of the County of Carver
a Minnesota Political Subdivision,
Plaintiff,
The City of Chanhassen, et al.,
Court File No.
STIPIKATION OF SE'ITL~ZMENT
AND ORDER FOR ,HJDGMENT
The County of Carver ("County"), the City of Chanhassen ('~ity") and the Chanhassen
Economic Development Authority ("Authority") hereby stipulate and agree as follows:
WI4HRF_.AS, pursuant to Minnesota Statutes Section 469.1771, subd. l(c), hhe Office of
the State Auditor (the "OSA") issa~ a Pinal Notice of Noncomp~ dared March 21,
2000 regarding the Authority's Tax In~t l~ancing District 2-1 (the 'T)isttiet');
and
~, pursuant to Section 469.1771, subd. l(b) of the Act, the OSA notified the
County Attorney of its findings of viohtions of the Tax Increment Fnumeing Act
("Act") regarding the District; and
· WI-IRREAS, the County AtWmey initial~l this action under Section 469.1771, subd.
l(b) of the Act; and.
~S, this settlement shall constitute a full and complete resolution of the OSA's
alleged violations set forth above and asserted in ttiese proceedings under Section
469.1771, subcC l(b) of the Act.
WHEREAS, it is undemood and agreed that this Settlement is a compromise of
disputed claims, not to be construed as an admis~on of '.liability on the part of the City or
the Authority, and the City and the Authority deny liability for the claims being asserted.
NOW, THRREFORE, the parties agree as follows:
1. This settl~t resolves aU disputes arising out of the trmal Notice of
Noncompliance from the OSA dated March 21, 2000 asserted in these proceedings concerning the
Dislxict.
2. The City of Chanhassen shall pay to the Carver County Auditor within ten (10) days
of the execution of this Stipulation and entry of Judgment the amount of $144,553.87, togeflu~ with
inl~r~ in the,amount of g26,311.82 through March 14, 2003 and per diem inteaz~ ~ based
upon the most recent average monthly one-year T-bill rate (1.27%) until d_a~e of payment.
3. The Carver County Auditor shall distribute the funds to Carver County to the
exclusion of the City of Chanhassem
·
4. Each party shall pay their own costs and disbursements inctm~ in these
proceedings
COUNTY OF CARVER
Dated: ,2002. B~..
CITY OF ~
Dated: ,2002 By:.
ECONOMIC DEVELOPM~.NT
AUTHORITY IN AND FOR ~
CITY OF CHANHA~EN
Dated:
Based upon the above Stipulation~ IT IS Ia ~.~ ~.sY ORDERRD,
1. Thc City of Chantmssen shall pay to the Carver Cormty Auditor within ten (10) days
of the execution of this Stipulation and entry of Judgment the amount of $144,553.87, together with
interest in the amount of $26,311.82 through March 14, 2003 and per diem interest thereafter bssed
upon the most recent average monthly one-year T-bill rate (1.27%) until da~ of payment.
2. The Carver County Auditor shall distribt~ the funds m Carver Cotmt~ to th~
exclusion of the City of Chan~sea.
3. E~h tmrty shall be n~xmsible for its own costs and disbursements incurred in these
proceedings.
BY THE COURT:
103643 3