ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Housing Policy & Development Committee | Nov 7, 2018 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Tax Increment Financing | Passage of Resolution approving the decertification of the Portland Place Tax Increment Financing (TIF) District as of Dec. 31, 2018, and authorizing the City's Finance Officer to establish any appropriations necessary to return surplus tax increment revenue from the TIF district to Hennepin County for redistribution. |
Previous Actions
Portland Place TIF District and TIF Plan was approved by the City Council on May 22, 1998.
City Council approved Modification No. 1 to the Portland Place TIF Plan on October 27, 2000.
City Council approved Modification No. 2 to the Portland Place TIF Plan on October 21, 2011.
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 6 | Phillips West | Various |
Background Analysis
The Portland Place TIF District (No. 90) is located in the Philips West neighborhood of Ward 6. It is bounded on the north by 25th St. E., on the south by 28th St. E., on the east by Portland Ave. S., and on the west by 5th Ave. S. The TIF District and TIF Plan were approved in May of 1998. The TIF Plan was modified in 2000 and 2011 to make adjustments to the TIF budget. The 2011 modification has allowed $285,000 in surplus tax increment to be appropriated to the City's Affordable Housing Trust Fund (AHTF) Program between budget years 2012 and 2016.
Pursuant to the "TIF Act" (M.S. Sections 469.174-469.1799) when TIF districts have paid off all of their financial obligations, the TIF district must be decertified (terminated) and any surplus tax increment must be returned to the county for redistribution to the city, county and school district. The Portland Place TIF District paid off all of its financial obligations in 2017, and currently has sufficient cash in Fund 01CPD to cover the $215,000 in unspent appropriations to the AHTF. Therefore, the TIF Act requires that the City Council pass a resolution decertifying the district as of December 31, 2018. Additionally, the City Council needs to authorize the City's Finance Officer to establish any appropriations necessary to return surplus tax increment revenue in Fund 01CPD to Hennepin County for redistribution to the City, Hennepin County and Special School District No. 1.
FISCAL NOTE
- No fiscal impact anticipated