VII.2. TIF Management Plan Update; Elverum
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kersten Elverum, Director of Planning & Development
Date: December 7, 2021
Subject: TIF Management Plan Update
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PURPOSE
The purpose of the discussion on December 7, 2021, is to present an update to the City
of Hopkins TIF Management Plan including the use of Spending Plan dollars,
incorporation of special legislation received in 2019 and allowing an additional 10% to be
spent on affordable housing from TIF 2-11, and modification to TIF Note C in TIF 1-5 to
allow for payment from TIF 2-11. Stacie Kvilvang, Ehlers Public Municipal Advisors, will
be at the meeting to present and make recommendations for future action.
INFORMATION
Tax Increment Financing (TIF) is primary community development tool cities have to
further their development goals. The use of TIF is regulated by the State of Minnesota
with strict rules around its use. Hopkins has used TIF to facilitate key redevelopment
projects that have had catalytic impacts. The presentation by Ehlers will provide an
overview of the City’s use of TIF and current districts.
Additionally, in an effort to maximize its impact and bring development projects back
onto the full tax roll of the City, Ehlers is recommending slight modifications to our
existing Plan and TIF Notes issued including the following:
• Use of Spending Plan dollars, previously approved by the HRA and City Council
to support the Trilogy project commitment of $685,000 in environmental clean-
up funds
• Use of up to $3.75 million in Spending Plan dollars for 325 Blake Road
redevelopment
• Incorporation of special legislation secured in 2019 for TIF 2-11 and to make the
election to allow an additional 10% to be spent on affordable housing
• Allocation of pooling dollars from 2-11 to 1-5 to start payments on the $8 million
C Note in order to pay it off at the same time as the A and B Notes. This will
result in the district obligations being paid in nine years.
FUTURE ACTION
The plan is to bring a resolution approving the modification to TIF 2-11 incorporating
special legislation and electing the additional 10% for affordable housing and a
resolution approving an amended TIF Note C for 1-5 to the HRA at the December 21,
2021, special meeting.