CR 09-078 Approve Decertification of TIF District 2-10October 6, 2009 14ca Council Report 2009 -078
City of Kopkim
APPROVE DECERTIFICATION OF TIF DISTRICT 2 -10
Proposed Action
Staff recommends adoption of the following motion: Move to adopt Resolution 2009 -048 Approving
Decertification of TIF District 2 -10.
Overview
TIF District 2 -10 was created on October 6, 1998 within Redevelopment Project No. 1 and is commonly
known as Hopkins Business Center located on Excelsior Blvd. The development consists of Citizens
Independent Bank and Office /Warehouse space. The duration of TIF District 2 -10 was to be 9 years from the
date of receipt of the first increment or 11 years from approval of the plan, whichever is less. The first
increment was received in 2001 and 9 years from that date would be 2010. Eleven years from plan approval
is 2009 which is the earlier date and therefore the required decertification date.
The final payment to the developers will be made in October which will fulfill our obligation to them. Any
excess TIF funds remaining once final payment is made to the developers will be returned to Hennepin
County for disbursement to the various taxing districts. For taxes payable in 2010 this decertified district
will add approximately $6,800,000 of market value and $135,250 of net tax capacity to our overall tax base.
Primary Issues to Consider
• TIF District has a statutory mandated decertification date of October 6, 2009.
Supporting Information
• Resolution 2009 -048
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ increased tax capacity Budgeted: Y/N X N Source:
Related Documents (CIP, ERP, etc.): Notes:
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2009-048
RESOLUTION APPROVING THE DECERTIFICATION OF TAX
INCREMENT FINANCING DISTRICT NO. 2 -10 OF THE CITY OF
f1304 15.1
WHEREAS, on October 6, 1998, the City of Hopkins (the "City ") created its Tax Increment
Financing District No. 2 -10 ( "District No. ") within its Redevelopment Project No. 1 (the "Project "); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment from District
No.2 -10 have been pledged have been paid in full or defeased and all other costs of the Project have been
paid; and
WHEREAS, the City desires by this resolution to cause the decertification of District No.2 -10
after which all property taxes generated by property within the District will be distributed in the same
manner as all other property taxes.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins that the
City's staff shall take such action as is necessary to cause the County Auditor of Hennepin County to
decertify the District No. 2 -10 as a tax increment district and to no longer remit tax increment from the
District No.2 -10 to the City.
Adopted by the City Council of the City of Hopkins this 6` day of October 2009.
ATTEST:
Terry Obermaier, City Clerk
Gene Maxwell, Mayor
(Seal)