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1i-2 Decertify TIF District #1 CITY OF CHANHASSEN 7700 PO Bnx 147 IvlN 55317 Administration %2.227 lIDO Î î 10 Building Inspections 952.2271 Î 80 1190 Engineering 952 227 lifiU 9522:27 ~ 17D Finance 952 2271 IAO 952.2271110 Park & Recreation 952.2271120 Fox 952.227 1110 Planning & Natural Resources 952.227 1 Fox 9522271110 Public Works 1591 fM Rion 952 ZU 1300 9522271310 Web Site 1 "1 --c -" d, MEMORANDUM ,> TO: Todd Gerhardt, City Manager FROM: Justin Miller, Assistant to the City Manageí1~'" DATE: September 9, 2004 RE: De-Certification of the Downtown TIF District #1 BACKGROUND The City of Chanhassen has established Tax Increment Districts to assist in the economic development of the City. One of these districts, the Downtown District # 1 has reached a point where it needs to be decertified and placed on the general tax rolls. Downtown TIP District # 1 (County District #25) This district was originally created on December 19, 1977. The size and scope of this district has been modified several times to include projects and areas not originally anticipated. The duration date of this district has also been extended to help offset deficit problems encountered due to tax law changes. All obligations for this district will have been met by the end of 2004, so decertification of this district is now recommended. Minnesota state statute requires cities to notify the State and Carver County of the City's desire to decertify TIF districts. While staff is recommending that the district actually be decertified effective December 31, 2004, giving Carver County this advance notice will allow them to produce more accurate Truth-In-Taxation notices that will go out this fall. RECOMMENDA TION Staff recommends the City Council approve the attached resolution decertifying the Downtown TIF District #1 effective December 31,2004. A simple majority of the council is required for approval of this action. The City of Chanhassen · A OrclNI11g C0i1IIí1UI11!V willi CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: September 13, 2004 RESOLUTION NO: 2004-62 MOTION BY: SECONDED BY: RESOLUTION APPROVING DECERTIFICATION OF THE DOWNTOWN TIF DISTRICT A. WHEREAS, on December 19, 1977, the City of Chanhassen (the "City") created its Tax Increment Financing District No.1, (the "District") within its Development District No.1 (the "Project"); and; B. WHEREAS, Minnesota Statutes, Section 469.174 to 469.179 requires that the Tax Increment Financing District be terminated when all obligations within the district have been met; C. WHEREAS, the City desires by this resolution to acknowledge the decertification of the District, after which all property taxes generated by property within the District have been and will continue to be distributed in the same manner as all other property taxes beginning with taxes payable in 2005, and; D. WHEREAS, as of December 31, 2004 all bonds to which tax increment from the District have been pledged have been paid in full; and; E. WHEREAS, the remaining tax increment in the account for the District will be returned after the books for 2004 are closed to the County Auditor for redistribution to the regular taxing jurisdictions; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota, as follows: That the Carver County Auditor is authorized and requested to decertify the Downtown District No. 1 (County District No. 25) as a tax increment district and to no longer remit tax increment from the District to the City as of December 31, 2004. Passed and adopted this 13th day of September, 2004. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT