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1g Modify Downtown TIF DistrictCITYOF CHANHASSEN 7700 I,/iarke! Bou!evard PO Box 147 Ohanhassen, MN 55317 Pilone; 952227 1100 Fax: 952227 1110 Building Inspections Pl~one: 952 2271180 Fax 95222? ~190 Fngineering Pl~or/e: 952227 1160 Fax: 952 2271170 Finance Phoile 952 22/1140 Fax: 952 2271110 Park & Recreation Phone: 9522271120 Fax: 952 2271110 Recreation Cenier 2310 Coulter Boulevard Phone: 9522271400 Fax: 9522271404 Planning & Natural Resources Pho~le: 9522271130 Fax; 9522271110 Public Works 1591 Park Road Phone 952227 1300 Fax: 952227 1310 Senior Cenler Phone 9522271125 Fax 952 227 1110 Web Sile w~v~,, ci s!~anhassen mn us MEMORANDUM TO: FROM: DATE: Mayor City Council Bruce M. DeJong, Finance Directo~'~) SUBJECT: Call for Public Hearing of a Modification to the Tax Increment Financing Plan for the Downtown Chanhassen Tax Increment Financing District. In order to extend the life of our Downtown TIF district, we have to modify our T[F plan. We need to get this resolved yet this year before November 1, because this is when our last regular qualified debt for the district comes due. New laws were passed during the special session that added to section 469.1794 - Duration Extension to Offset Deficits. This allows the city to extend our TIF district one year based on statutory language which we have confirmed with both Carver County and the Office of the State Auditor. The law also provides the Commissioner of Revenue with discretion to extend the duration limit for up to another two years. That finding has to be based reductions of increment caused by changes in class rates and the elimination of the general education property tax levy. This modification of our TIF plan will be accompanied by an analysis of the districts cash flows and the likelihood of getting an extension from the Commissioner of Revenue. We need to know how to process tums out before we refinance the non-qualified TIF debt. Attachments: Resolution MN Stat. 469.1794 The City of Chanhassen · A growing community with clean lakes, quality schools a charming downtown, thriving businesses winding trails and beautilul parks A great placr' tr)i,,e ,~ark and play CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES STATE OF MINNESOTA RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE DOWNTOWN CHANHASSEN TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by the City Council (the "Council") for the City of Chanhassen, Minnesota (the "City"), as follows: Section 1. Public Hearing. This Council shall meet on October 27, 2003, at approximately 7:00 P.M., to hold a public hearing on the proposed adoption of a Modification to the Tax Increment Financing Plan for the Downtown Chanhassen Tax Increment Financing District, a pre-79 tax increment financing district (referred to herein as the "TIF Plan Modification") located within the Downtown Chanhassen Redevelopment Project Area, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, inclusive, as amended, in an efibrt to encourage the development and redevelopment of certain designated areas within the City; and Section 2. Notice of Public Hearing, Filing of TIF Plan Modification. City staff is authorized and directed to work with Ehlers & Associates, Inc., to prepare the TIF Plan Modification and to tbrward documeuts to the appropriate taxing jurisdictions including Carver County and Independent School District No. ~J~'/ 112. The City Manager is authorized and directed to cause notice of the hearing, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to October 27, 2003, and to place a copy of the TIF Plan Modification on file in the City Manager's office at City Hall and to make such copy available for inspection by the public. Dated: September 8, 2003 Adopted: ATTEST: Tom Furlong, Mayor Todd Gerhardt, City Manager