CR 10-058 - Approve Decertification of TIF District 2-1July 6, 2010AMP-
Council Report 2010-058
City of Hopkins
APPROVE DECERTIFICATION OF TIF DISTRICT 2-1
Proposed Action
Staff recommends adoption of the following motion: Move to adopt Resolution 2010-032 Approving
Decertification of TIF District 2-1.
Overview
TIF District 2-1 was created on December 3, 1985 within Redevelopment Project No. 1 and is commonly
known as the R. L. Johnson property located at 415 11th Ave S. The development consists of an office
complex. The duration of TIF District 2-1 is 25 years from the receipt of the first increment which was in
1987 thus making December 31, 2012 the mandatory decertification date.
The final payment to the developers was made in December 2009 which fulfills our obligation to them. Two
bond payments remain for 2011 and 2012 totaling $412,087 including interest. All remaining bonds are
callable February 1, 2011. After reviewing the cash flow for this district it has been determined that adequate
funds will be on hand at December 31, 2010 to call all remaining bonds and pay them in full. An additional
benefit from calling bonds early is interest savings totaling $7,175.
For taxes payable in 2011 this decertified district will add approximately $13,006,000 of market value and
$258,620 of net tax capacity to our overall tax base.
Primary Issues to Consider
• Adequate funds exist to pay all remaining TIF obligations.
• TIF District has a statutory mandated decertification date of December 31, 2012.
Supporting Information
• Resolution 2010-032
• Cash Flow Analysis for TIF District 2-1
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ increased tax capacity Budgeted: Y/N X N Source:
Related Documents (CIP, ERP, etc.): Notes:
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