1e Auth Deficits in TIF Dist
CITY OF
CHANHASSEN
7700 Market Boulevard
POBox 147
Chanhassen, MN55317
Adminis1ration
Phone: 952.22/,1100
Fax: 952,227.1110
Building Inspections
Phone 952.227.1IBO
Fax 952.227.1190
Engineering
Phone: 952.227.1160
Fax 952.227.1170
Finance
Phone: 952,227,1140
Fax 952,227,1110
Park & Recreation
Phone 952.227,1120
Fax 952,227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227.1400
Fax 952.227.1404
Planning &
Natural Resources
Phone: 952,227.1130
Fax: 952,227.1110
Public Works
1591 Park Road
Phone: 952,227.1300
Fax 952,227.1310
SeniorCenler
Phone: 952,227,1125
Fax: 952,227.1110
Web Site
www.ci.chanhassen.mn.us
1.e.
MEMORANDUM
TO:
Mayor
City Council Members
FROM:
Bruce M. Dejong, Finance Director
~cM:!
DATE:
December 7, 2004
SUBJECT: Approve Resolution Authorizing Deficits in Gateway &
Presbyterian Homes Tax Increment Districts
In order to comply with state statutes, the city must authorize interfund loans to
two additional TIF districts. Back in 2003, state law was changed to specifically
authorize interfund loans for TIF deficits. We have two districts that went into
deficit at the end of2003, so we need to specifically authorize them to receive
loans trom other city funds. The Presbyterian Homes and Gateway districts are
the two affected.
Background
Because capital projects were accounted for in the Special Assessment Fund (600)
rather than the Gateway TIF district, transfers to cover the cost of the projects
were required. This resulted in a deficit in the Gateway TIF (495). This deficit
should be cured in 2004 with the increment the district will generate.
The Presbyterian Homes TIF district has yet to generate any increment because it
didn't have any new construction activity for the 2004 tax year. The taxes paid
were based on the value as of January 1, 2003 which was prior to the creation of
the district. This time lag and the design process led to no increased value. The
district will start generating increment next year, but we may still have a deficit
based on just how much incremental value was added.
Recommendation
Staff recommends that the City Council approve the resolution as presented to
authorize interfund loans for each of these districts. This action requires a simple
majority of those present at the meeting.
Enclosure:
Resolution
The City 01 Chanhassen . A growing community wllh clean lakes, quality schools, a channing downtown, thrIVing businesses, winding trails, and beautllul parks, A greal place to live, work, and play,
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
December 13. 2004
RESOLUTION NO:
2004-
MOTION BY:
SECONDED BY:
Resolution Authorizing Interfund Loans to TIF Districts
A. WHEREAS, the City Council of the City ofChanhassen, Minnesota, previously determined that
it faced deficits in several Tax Increment Financing districts; and
B. WHEREAS, these state statutes require a resolution authorizing interfund loans; and
C. WHEREAS, these deficits will be cured through regular increment collections through the
statutory life of each district;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Chanhassen, Minnesota, as follows:
I. Authorization: Findings. The City Council hereby amends the authorization for interfund loans
up to the amount listed for the following TIF districts:
District
495 Gateway Tax Increment District
498 Presbyterian Homes Tax Increment District
Authorized Interfund Loan Amount
$500,000
$100,000
Passed and adopted by the Chanhassen City Council this 13th day of December, 2004.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES
NO
ABSENT