96-94 A AGREEMENT BETWEEN
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF CHANHASSEN AND
INDEPENDENT SCHOOL DISTRICT NO. 112
RELATING TO TIF REVENUE SHARING
AGREEMENT made this 20th day of February , 1997, between the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN (hereinafter
"HRA") and INDEPENDENT SCHOOL DISTRICT NO. 112 (hereinafter "School District").
RECITALS
· The School District and HRA have previously discussed the disposition of Tax
Increment Financing (hereinafter "TIF") funds arising out of additional tax levies relating to the
issuance of the School District's General Obligation School Building Bonds, Series 1993C in the
amount of $15,300,000.00 and bearing a date of original issue of July 1, 1993, and the School
District's General Obligation School Building Bonds, Series 1994B in the amount of $31,980,000.00
and bearing a date of original issue of May 1, 1994; and
· Certain TIF funds have in the past been transferred by the HRA to the School
District; and
· The parties desire by this Agreement to formalize the sharing of TIF funds generated
as a result of current and future Sc.,~oi District~,~:c..u~ and resulting levies; and
· The parties recognize that this Agreement is based upon present state law and that the
HRA must retain the ability to modify or terminate this TIF revenue transfer in the event of changes
in state law; and
· The Chanhassen City Council has approved this Agreement.
43763.02
r04/22/97
NOW, THEREFORE, the parties agree as follows:
1. Commencing with payable 1995 taxes and terminating with payable 2000 taxes, the
HRA will transfer to the School District TIF revenues as calculated according to Exhibit "A" hereto
which is incorporated herein by reference.
2. The HRA will not transfer any TIF revenues to the School District unless and until
the HRA actually receives the TIF revenues.
3. The HRA shall have the right to terminate this Agreement if changes occur in state
law which directly or indirectly effect the amount of TIF revenues received by the HRA.
Dated: February 20 , 1997.
Approved by the Chanhassen City
Council danuar¥ 27 , 1997.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF CHANHASSEN
And '~:'I(s'~~~~~
It~-~xecutiv~ector
Don Ashwor~hTCity Manager/Clerk
Dated: ,1997.
INDEPENDENT SCHOOL
DISTRICT NO. 112
By:
Its:
By:
Its:
43763.02
r04/22/97
18-Apr-97
EXCESS LEVY DISTRIBUTION
TAX INCREMENT REVENUES
FROM: CITY OF CHANHASSEN
TO: lSD 112
14:36
1992
1993
1994
1995
1996
1997
1998
1999
2000 .
BASE
YEAR
1992
TIF lSD DIFF
TAX 112 TAX CURR YR-
CAP (1) RATE (2) BASE YR
3,695,795 62.658
3,488,337 57.172 -5.486
3,556,465 62.883 0.225
3,736,225 71.220 8.562
3,764,225 71.201 8.543
3,764,225 70.000 7.342
3,764,225 70.000 7.342
3,764,225 70.000 7.342
3,764,225 70.000 7.342
ADD'T
TAXES
GEN.
($191,370)
$8,002
$319,896
$321,578
$276,369
$276,369
$276,369
$276,369
ANTIC.
PYMT
lSD 112 (3)
$350,000
$600,000
$366,000
$343,000
$365,000
$343,000
ACT,
PYMT TO
lSD 112 (4)
$350,000
$600,000
$276,369
$276,369
$276,369
$276,369
NOTES:
1)
Although the city and School District 112 agreed to share excess tax increment generated
as a result of the school's referendum of 1992/93, significant disagreement occurred in
1993-1995 as to how the "excess" would be calculated. During this time frame, the HRA
entered into various "incentive agreements" essentially agreeing to return three years of
"full increment" created by the prospective firms (1995-2000). All of this occurred during
a time frame of substantial deterioration of the existing base valuations of commercial/
industrial properties. (Fallout of the S & L failures of the late 1980's.) Accordingly, the
total tax capacity, as presented in this agreement, is the base tax capacity of $3,736.225.
The City of Chanhassen will consider increasing this base value to a value between
$3,736,225 and any current value if the total debt obligations incurred prior to July 1, 1996
and administrative costs (defined by state statute) and reimbursement agreements (prior to
July 1, 1996) is less than the tax increment which was actually received by the HRA.
[Note: The calculation in any year that this phenomenon occurs shall be to adjust the "TIF
TAX CAP" column to the current value, but the result of that calculation shall not exceed
the amount of debt, as defined above, incurred prior to July 1, 1996, including
administrative costs and reimbursement agreements.]
2 & 3 The base tax rate prior to the referendum was 62.658. As the school district levies 1½
years in advance of receiving property tax receipts, an overpayment was agreed to by the
city, even though the city did not receive the monies in 1995 and 1996 as anticipated in
1992/93. The city, by this agreement, agrees that future capital, operational, or other
increases to the school district's total tax levy shall be governed by this agreement through
the year 2000 so as to ensure that excess tax increment (current and future) is returned to
the school district. [Note: a) The amounts overpaid by the city to ISD 112 will be repaid
to the city from future excess levy calculations as a result of a future referendum; and
b) The resolution adopting this worksheet as to the city's ability to make payments to ISD
112 shall override calculations presented here as it would relate to changes in state law
regarding calculation of taxes, tax increment received by the city/HRA, calculation of tax
capacity rates or tax capacity, etc.]
4)
The "Act Pymt to ISD 112" shall be adjusted each year to represent the "T!F TAX CAP"
(as referred to above) times the difference between the current total tax rate and the base
year tax rate. Stipulations described in 1-3 above, shall apply.
g:\mgr\isd I 12levy.
(seal)
YES
Chmiel
Dockendorf
Senn
Mason
Berquist
NO
None
City Clerk
City of Chanhassen
ABSENT
None