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HomeMy WebLinkAbout2010-03-17 PACKET 04.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 3/17/10 PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Information regarding action by the EDA in support of proposed special TIF legislation for District 1 -12. STAFF RECOMMENDATION No action required. Information only. BUDGET IMPLICATION BUDGETED AMOUNT ADVISORY COMMISSION ACTION DATE REVIEWED ❑ PLANNING ❑ ❑ PUBLIC SAFETY ❑ ❑ PUBLIC WORKS ❑ ❑ PARKS AND RECREATION ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ SUPPORTING DOCUMENTS ACTUAL AMOUNT APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: R Roland Memo & Letter to John Mehrkens ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS � City Administr� I t i O f ' � y ator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED OTHER C1Documents and Settings \rroland \My Documents \City Council Action Form.doc To: Honorable Mayor and City Council Ryan Schroeder, City Administrator From: Robin Roland, Finance Director :. i Date: March 11, 2010 Subject: Proposed TIF Legislation — TIF District 1 -12 Background At its meeting on March 9, 2010, the EDA approved proposed language for inclusion in special TIF legislation being proposed by the City of Wayzata and Senior Housing Partners (Presbyterian Homes). The proposed legislation initially would benefit the Presbyterian Homes project in Wayzata, but could potentially improve the development prospects of the Norris marketplace property in TIF district 1 -12 in Cottage Grove. A letter outlining EDA support of this proposed language is attached with this memo. Senator Katie Sieben and Representatives Karla Bigham and Denny McNamara have all been alerted to the potential of inclusion of this language in a forthcoming bill. When an actual House /Senate File number is identified that information will also be passed along to them. Recommendation This item requires no action by the Council. It is for information only. ('�ft City of Cotta Grove Minnesota 7516 W Street South I Cottage Grove, Minnesota 55016-3195 651 458 -2800 Fax 651 -458 -2897 w .cottaae•grove.ora Too 651- 458.2880 March 10, 2010 Mr. John Mehrkens Senior Housing Partners 2845 Hamline Ave. N. Roseville MN 55113 Dear Mr. Mehrkens: At its regular monthly meeting on March 9, 2010, the Economic Development Authority of the City of Cottage Grove approved submittal of language for special TIF legislation involving TIF District 12 in the City of Cottage Grove. The language approved was as follows: A bill for an act relating to the Economic Development Authority of Cottage Grove; extending time for certain activities in a tax increment financing district BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [FIRST RECEIPT EXTENDED] Notwithstanding Minnesota Statutes, Section 469.175, subdivision 1, paragraph (b), the Economic Development Authority of Cottage Grove may modify the tax increment financing plan for Redevelopment Tax Increment Financing District No. 12 to change the first year in which it elects to receive increment, up to nine years following the year of approval of the district. Minnesota Statutes, section 469.175, subdivision 4, paragraph (b) does not apply to such modification of the tax increment financing plan. Sec. 2. [FIVE YEAR RULE.] The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year period from the date of certification of a tax increment financing district, is considered to be met for Redevelopment Tax Increment Financing District No. 12 in the city of Cottage Grove if the activities were undertaken within ten years from the date of certification of the district. .Sec. 3. [PARCELS DEEMED OCCUPIED.] Any parcel in Redevelopment Tax Increment Financing District No. 12 in the city of Cottage Grove is deemed to meet the requirements of section 469.174, subdivision 10, paragraph (d), clause (1) if the following conditions are met: (a) a building on the parcel was demolished by a developer or the city after the city council found such building to be structurally substandard upon approval of original tax incrementfinancing plan for the district; and (b) the city decertifies Redevelopment Tax Increment Financing District No. 12, but files a request with the county auditor for certification of the parcel as part of a subsequent redevelopment or renewal and renovation district within ten years after the date of demolition. [EFFECTIVE DATE]. This act is effective upon compliance by the governing body of the Economic Development Authority of Cottage Grove with the requirements of Minnesota Statutes, section 645.021, subdivision 3. EQUAL OPPORTUNITY EMPLOYER Should you have any questions regarding this action, please contact me. EDA Executive Director /City Administrator