99-64 CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: July 26, 1999
RESOLUTION NO: 99-64
MOTION BY: Senn SECONDED BY: Engel
A 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
tax class 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 $6,0000,000;
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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen,
Minnesota as follows:
The staffis 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 staffis 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 staffis authorized and directed to take any and all other actions necessary or convenient
to carry out the purpose and intent of this resolution.
Passed and adopted by the Chanhassen City Council this 26th day of July, 1999.
ATTEST:
Scott A. Botcher, City Manager
Nancy K. Mancino, Mayor
YES
Mancino
Jansen
Senn
Engel
NO
None
ABSENT
Labatt