1m Tax Increment TransfersCITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
CI/ar/hassen, MN 55317
Administration
Phone: 9522271100
Fax: 9522271110
Building Inspections
Phone: 952 227 1180
Fax: 952 227 1190
Engineering
Phone: 952 227 1160
Fax: 952227 1170
Finance
?hone: 952.2271140
Fax: 952227 1110
Park & Recreation
Phone: 952 2271120
Fax 9522271110
Recreation Center
2310 Coulter Boulevard
Phone 952.2271400
Fax: 9522271404
Planning &
Natural Resources
Phone: 9522271130
Fax: 952227 1110
Public Works
1591 Park Road
Phone: 9522271300
Fax: 952 2271310
Senior Center
Phone 9522271125
Fax: 9522271110
Web Site
wwwci chanhassen mn.us
MEMORANDUM
TO:
FROM:
DATE:
Mayor
City Council Members
Bruce M. DeJong, Finance Direct r~~0~
August 17, 2004
SUBJECT: Tax Increment Transfers
As part of addressing our tax increment district problems, staff is proposing
several transfers. We will move non-increment revenues from several TIF
districts to the Historic Preservation fund (800), and then transfer funds out of
Historic Preservation to close the funds related to the Powers Road project and
McGlynn TIF district.
Background
There were several transfers into the Downtown TIF district which were from
general property tax sources. Staff has discussed this issue with representatives
from Ehlers, HLB Tautges, Redpath, and Kennedy and Graven. They believe that
we should transfer back out each of these items that we can clearly identify as
being non-increment prior to closing the district. These transfers are listed on the
enclosed sheet and total $2,213,264. This amount will be transferred to Historic
Preservation. This will increase the balance in that fund to $8,163,844.
The 1996D bonds (344) were used to fund construction of Powers Road which is
a county road. The funding source was to be excess TI]7 funds from Chanhassen
and Carver County which were to be generated by the Downtown district.
Property tax reform eliminated any hope of excess increment from this district so
the deficit has to be paid by Historic Preservation. This final bond payment on
February 1, 2004 brought the deficit to $4,366,021.40.
The McGlynn TIF district (468) did not develop rapidly enough to pay off all the
projects that were associated with it. The deficit in the district is $1,136,877.78
plus interfund interest that is owed to the funds which have loaned money to this
fund. There is also a bond issue that is associated with this district - 1998D Tax
Increment Refunding bonds (347). This final bond payment on February 1, 2004
brought the deficit here to $1,515,647.35.
The City of Chanhassen "A growing community with clean lakos gual ty schools
Tax Increment Transfers
August 17, 2004
Page 2 of 2
CITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Char hassen MN 55317
Administration
Phone: 9522271100
Fax: 952227 1110
Building Inspections
Phone: 9522271180
Fax: 9522271190
Engineering
Phone: 952 227 1160
Fax: 952 2271170
Finance
Phone: 9522271140
Fax: 952227.1110
Park & Recreation
Phone: 9522271120
Fax: 952 227 1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.2271400
Fax: 9522271404
Planning &
Natural Resources
Phone: 952227 1130
Fax 952 2271110
Public Works
1591 Park Road
Phone: 9522271300
Fax: 9522271310
Senior Center
Phone: 952.2271125
Fax~ 952227 1110
Web Site
wwwci chanhasserl mn us
The total deficits that we are clearing amount to $6,988,546.53. We will be
unable to close out these funds without the transfer of non-increment out of the
Downtown district. Staff is pursuing an application with the Minnesota
Commissioner of Revenue for an extension of the Downtown district past its
statutory closing date of November 1, 2004 in order to resolve its deficit.
Recommendation
Staff recommends that the City Council approve the transfers as recommended in
order to close these funds in deficit. This action requires a simple majority of
those present at the meeting.
Enclosure: Transfer History for the Downtown TIF District
The CiI¥ of Chanhassen · A growing community with clean lakes, quality Schools
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