1e Resol Addl Pooling AuthorityCITYOF
CHANHASSEN
1 Cig Center Drive, PO Box' 147
'hanhassen, Minnesota 55317
?bone 612.937. I900
General tax 612 937. 5739
~gitzeering Fax 612.937.9152
,.b/it 8afeq Fax 612.934.2524
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TO:
FROM:
DATE:
SUB J:
MEMORANDUM
Mayor
City Council
Scott A. Botcher, City Manager
Augnst 7, 2000
Resolution Authorizing Request for Additional Pooling Authority
You'll find on your agenda this evening a resolution that staff is requesting you pass
authorizing staffto prepare and submit all documentation necessary to obtain
permission to pool tax increment within the city.
If you recall, we had a similar discussion about this last year and decided not to pursue
additional pooling authority. At that point in time, the improvements on Highway 101
were much more uncertain. Leaving the monies in the Hennepin County District made
sense, in case some resolution on the Highway 101 issue was forthcoming. If that had
occurred, these dollars could have gone for the city's share of improvements on this
roadway.
Moving forward a year, it is apparent that improvements acceptable to the City of
Chanhassen will be forthcoming in the near term. That being said, it is in our best
interests at this point to pool the dollars from the Hennepin County District so as to not
potentially lose them in the future. We have had many discussions with financial and
legal advisors about the fund balance that exists in the Hennepin County District. At
this point we have been unable to come up with a method by which we could transfer
the fund balance from the Hennepin County District to other tax increment uses xvithin
the community. However, we are able to pool current year revenues from districts with
surplus balances to those with deficit balances. This accomplishes two things. First it
will allow us to apply these revenues to qualified uses in districts where deficits exist,
and secondly, it will stop an unnecessary increase in the fund balance for the districts
with positive balances. These balances may in all probability be distributed among all
the taxing authorities having jurisdiction over a specific district. That means that these
dollars may end up being divided between the schools, counties, Metro Council, and
other taxing jurisdictions instead of being applied wholly to the benefit of the City of
Chanhassen.
With that sketch, I would request that the Council approve the resolution authorizing
staff to apply for additional pooling authority. Thank you.
c:
Bruce DeJong, Finance Director
Todd Gerhardt, Assistant City Manager
Don Ashworth, Economic Development Director
e City ofChanhasse~t. A growinz community with clean lakes, ,uality sc/~ools, a cha.,i,g downtown, thrivin~ businesses, atzd beautiful vat'ks. A ereat ol~ce to live, work, and vlav.
H A
RTER
E D
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://w~vw, kennedy-graven.com
RONALD H. BATYY
Attorney at Law
Direct Dial (612) 337-9262
Email: rbatty~kennedy-graven.com
July 28.2000
Mr. Scott Botcher
City Manager
City of Chanhassen
690 City Center Drive
Chanhassen MN 55317-0147
RE: Resolution Regarding Additional Pooling Authority
Dear Scott:
Enclosed is the resolution to be adopted by the city com~c'il authorizing staff and consultants to
prepare the forms necessary to submit a request for additional pooling authority to the depat~nent of
revenue.
Very truly yours,
Ronald H. Batty
RHB:lh
RHB- 183820v 1
(IH 130-o6
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date
Motion By
Resolution No.
Seconded By
RESOLUTION AUTHORIZING REQUEST FOR ADDITIONAL
POOLING AUTHORITY
Section 1. Recitals.
1.01. Pursuant to Minnesota Statutes, section 469.1763, subd. 6, the City of Chanhassen
("the City") is authorized to apply to the Minnesota Department of Revenue (the "Department") for
additional authority to pool increment among qualifying tax increment districts.
Section 2. Authorization to Apply for Additional Pooling Anthorit¥.
2.01. City staff and consultants are hereby authorized to prepare and to submit to the
Department all forms and other documents required by the Department in order to obtain permission
to pool tax increment within the City. Said documents include, but are not limited to, the "20(X)
Application Ik~r Additional Pooling Authority" form which must be returned by September 1, 2000
and the "Payable 1999 TIF Property Net Tax Capacity Loss Report" forn~ which is due on
September 15, 2(X)0.
2.02. City staff and consultants are also authorized and directed to take any and all other
actions necessary to obtain permission from the Department to pool additional tax increment within
the City in order to carry out the intent of this resolution.
DATED: ., 2000.
ATTEST:
Nancy Mancino, Mayor
Scott Botcher, City Clerk/Manager
RHB-183762vl
C11130-66