1i-2 Decertify TIF District #1
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MEMORANDUM
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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