HomeMy WebLinkAbout2015-04-14 PACKET 04.D.01.
To: Economic Development Authority Members
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Date: April 9, 2015
Subject: Consider adopting a modification to the development program for development
district number 1, establishing tax increment financing district 1-15 and adopting
the tax increment financing plan for district 1-15
Introduction & Discussion
At the February 10, 2015 Economic Development Authority (EDA) meeting, the EDA passed a
resolution requesting that the City Council call for a public hearing on modifying the current
development plan, establishing TIF District 1-15.
At the February 18, 2015 City Council meeting, the City Council passed a resolution calling for
the public hearing to be held on April 15, 2015.
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The Planning Commission reviewed the TIF plan at their March 23 meeting. They found the
plan to be in conformity with the comprehensive plan of the city and passed a resolution to that
effect.
The EDA is now asked to consider adopting a resolution creating the new TIF District and
adopting the Tax Increment financing plan for that district. A summary of the district and the
proposed TIF plan are attached with the resolution.
The TIF plan is being created to facilitate the construction of a 100,000 square foot expansion
to the existing American Logistics manufacturing, warehouse, and distribution facility in the
Business Park. The EDA adopted the development agreement for this project on March 10,
2015. Appendix A of the TIF Plan has a more detailed project description if members need it.
The TIF plan also includes a “sources and uses” statement on pages 2-5 and 2-6 that will
serve as the maximum project budget. Appendix D addresses the cash flows of the project
and shows generation of between $122,000 and $155,000 annually in tax increments for the
district. Appendix F addresses the “but for” test with the conclusion that without the use of tax
increments, the improvements would not be able to occur.
Action Requested
Adopt the resolution modifying the development district number 1, establishing TIF District 1-15
and adopting the TIF plan for the district.