1m Excess Tax Increment/Dist 3
CITY OF
CHANHASSEN
City Cent" Drive, PO Box 147
'anhassm, Minn"ota 55317
Phon, 612.937.1900
;.."al Fox 612.937.5739
;nuring Fox 612.937.9152
lie Safety Fax 612.934.2524
·b www.ci.chanhassm.mn.us
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MEMORANDUM
TO:
Mayor
City Council
Bruce M. Dejong, Finance Directc{fii)
FROM:
DATE:
December 6, 2000
SUBJECT:
Declare Excess Increment in TIF District 3 - Hennepin County
for 2000
As you are well aware, there are two reasons that we wish to declare excess
increment in the Hennepin County TIF District for 2000. The first and most
important is that we can no longer reconstruct any part of Hwy. 101 since the state
has rescinded their turn back of the road. The second reason is that the positive
balance increases the amount of deficit that we have to show in other districts
order to qualify for the TIF grant program from the Department of Revenue.
I am asking the City Council to declare $1,195,000 as excess increment. That
figure is based on calculations made by Dave Mol, adjusted for actual year to date
expenditures and estimates of the remaining developer payments from Todd
Gerhardt. Please see page 3 of the fax from Dave Mol (included with the
defeasance item) to view how the return was calculated. It will essentially bring
the fund balance in the Hennepin County TIF District to zero at year end.
Weare keeping the district open for next year for two reasons. The first is that
there are still developer payments to be made in 2001. The second is that we may
still be able to pool increment from the district next year.
This money will be returned to Hennepin County and will be returned
proportionately to the Eden Prairie School District, Hennepin County and us
according to our tax rates. Those funds will be considered general tax revenues of
the city and the City Council may transfer them or use them as they see fit.
The only possible problem that we face is perhaps exceeding the limitation of
spending only 10% of increment received on administrative expenses. Dave Mol
is looking into that question, but the question would be posed whether we send
the money back this year or next.
:ity of Chanhassen. A f(TOwin~ community with cltan lakes, quality schools, a charmin! downtðw7l, thrioin, businesses, and btauti/ùl Darks. A mat .lace to live. work. and.fa.