1k Resolution TIF FundsCITYOF
CHANHASSEN
7i~y Center Ddve, PO Box 147
~nhassen, Minnesota 55317
Phone 612. 937.1900
:eneral Fax 612.93Z5739
ineering Fax 612.937.9152
!lc Safe~y Fax 612.934.2524
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www. a. chanhassen, mn. us
MEMORANDUM
TO: Mayor Mancino
City Council
FROM:
Scott A. Botcher, City Manager
DATE: July 21, 1999
SUB J:
Approval of Resolution Authorizing City to Apply for TIF Funds
As you are aware, and has been discussed previously, tax rate compression
effectuated by the Minnesota Legislature has resulted in a revenue shortfall for tax
increment districts within the City of Chanhassen and other communities
throughout the state as well. The state has established a pool of $6 million for
communities adversely impacted by legislative action to apply for with which
revenue shortfalls may be met. The resolution on the Consent Agenda this
evening simply authorizes city staffto apply for grant dollars from the tax
increment financing grant pool.'
Please contact me should you have any questions. Thank you.
g:\user\scottbMif resolution.doc
;iO~ of Chanhassen. ,4 growing community with clean lakes, quality schooh, a charming downtown, thriving businesses, and beauti3l parks. A great place to live, work, and play.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
Date: Resolution No.:
Motion By: Seconded By:
RESOLUTION AUTHORIZING APPLICATION
TO THE TAX INCREMENT FINANCING GRANT POOL
WHEREAS, the city of Chanhassen (the "City") and the Chanhassen Economic Development Authority
(the "EDA") operate various tax increment financing districts (collectively, the "TIF Districts") through the
community, which TIF Districts have incurred expenses to enhance development of the community and which rely
on the receipt of tax increment to meet their financial obligations; and
WHEREAS, the Minnesota legislature, in its 1997, 1998 and 1999 sessions, lowered property taxclass
rates, resulting in a decrease in the amount of tax increment,which will be collected by the TIF Districts; and
WHEREAS, the Minnesota legislature recognized the financial burden its actions have placed on many
communities due to decreased revenues; and
WHEREAS, the Minnesota legislature has also recognized the legal and moral commitment of
communities to meet their pre-existing debt obligations despite the reduction in expected tax increment revenues;
and
WHEREAS, to address the financial challenges posed by the change in property tax class rates, the
Minnesota legislature in 1997 established a $2,000,000 pool of state funds dedicated to help communities meet their
obligations if expected tax increment revenues declined for this reason; and
WHEREAS, in 1999 the Minnesota legislature, partly in response to the special legislation sought by the
City and other communities similarly situated, expanded the grant pool to $6,000,000; and
WHEREAS, the City is eligible to apply for a grant in the amount of its after-pooling tax increment deficit
or the reduction in revenues caused by the decrease in property tax class rates, whichever is less; and
WHEREAS, the preliminary calculations by the city staff, city auditor and fiscal consultant (collectively,
the "Staff") indicate that the City will experience a qualifying net deficit for its TIF Districts for the tax year 1998;
and
WHEREAS, applications for participation in the state grant pool for the tax year 1998 are due at the
Minnesota department of revenue by August 15, 1999.
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NOW, THEREFORE, Be It Resolved by the City Council of the City of Chanhassen, Minnesota as follows:
The Staff is hereby authorized and directed to make application to the Minnesota department of
revenue for the tax increment pool for the tax year 1998 in the maximum amount permitted by
law.
The Staff is authorized and directed to continue to collect data from and monitor the financial
performance of the TIF Districts in order to prepare for application in future years should the TIF
Districts experience continuing qualifying deficits.
The Staff is authorized and directed to take any and all other actions necessary or convenient to
carry out the purpose and intent of this resolution.
ATTEST:
Nancy Mancino, Mayor
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