Adopt Resolution #22-281 Decertifying Tax Increment Financing District #15.

Purpose:  The City Council needs to formally adopt a resolution when a tax increment financing district decertifies and forward a copy of the resolution to Anoka County.

Tax Increment Financing (TIF) District #15 (also known as Life Fitness) was a Renewal and Renovation District created in 2015.  The term of TIF District #15 officially expires on December 31, 2032.  The City proposes to decertify the district early as the last note payable was completed in 2022.  The City Council is required to formally decertify the TIF district and return any excess tax increment to the County in accordance with Minnesota Statute, Section 469.176, subdivision 2. 
 

A copy of the resolution will be forwarded to Anoka County when completed.

 

No alternatives.  Decertify TIF#15 and return to the general tax rolls.  As the district does not have any qualifying expenditures, future increment cannot be collected.  This district generated approximately $75,000 in tax increment.  With the decertification, approximately $75,000 will be added back to the General Property tax rolls.  Under the General Property tax, the city will receive approximately 42% of the approximately $75,000 or about $32,000.  The remaining will be distributed to the County and the School District.

Staff recommends adopting the resolution decertifying Tax Increment Financing District #15.