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September 11, 2012 Page 3 of 6 5 Ayes, 0 Nays - Motion Carried Public Hearing Public Hearin¢ None. Council Business Council Business 1. Call for Public Hearing on Proposed Modification to the Development Program 1. Call for Public for Development District No. 1 • the Proposed Adoption of a Modification to Tax P p p Hearing on Proposed Modification to the Increment Financing District No. 8. Report No. 12-221. Development Program for Development City Manager Lotter stated information was sent to the Council regarding this matter. He noted Director District No. 1; the Proposed Adoption of Femelius would be providing the Council with a brief report this evening. a Modification to Tax Director of Community Development Femelius stated as part of the annual Tax Increment Financing Increment Financing anal the City alerted City opportunity d the Ci about an to a4the I�� ' s public finance advisor (Ehlers) District No. 8. Report No. 12-221. budgets for certain TIF districts in order to maximize the amount of incre hent that can be pooled for New Brighton Exchange. He noted TIF District 8 was established in 1995 and is set to expire at the end of this year. He commented the proposed budget amendment to TIF District 8 (Rush lake Business Park) would generate more tax increment than the ca rent TIF Budget reflects. The reason for this is the development of the Hilton Homewood Suites at the comer of Old Highway 8 and Highway 96. It is estimated the district will generate approximately $363,000 of excess TIF. All of this increment could be made available for pooling in NBE. If the budget was not amended, this excess would be returned to the County and the City would receive about 1/3 of it back. Director of Community Development Femelius there discussed the proposed changes for TIF District 19. He noted this district was certified in 1992 and expires on December 31, 2019 and all underlying obligations have been paid For this reason, the district should be decertified. Staff recommended the Council establish a public hearing date for November 13, 2012 and direct staff to prepare a resolution for consideration at a fixture meeting to decertify TIF District 19. Councilmember Samuelson asked if there was anything Mark Ruff from Ehlers & Associates would like to add to this report. Mark Ruff, Ehlers commented the surplus could not be used for City operations, but instead for tax increment eligible costs. The fiords could be used to assist with the New Brighton Exchange protect, which would minimize future liabilities. Councilmember Burg was pleased that a positive cash flow of increment would be assisting with firture expenses for the New Brighton Exchange. She commented the next budget cycle would also have an increased tax base by decertifying TIF District 19. City Manager Lotter indicated amending the budget would limit the increment dollars to be used only for TIF expenses. If the Council chose to not amend the budget these funds would be redistributed with the City receiving approximately $100,000 that could be used at the Council's discretion. He commented there would be several other TIF Districts decertifying in the next few years. Councilmember Samuelson requested fimrther clarification on how the TIF fiords could be used Mr. Ruff provided further clarification. Motion by Councilmember Jacobsen, seconded by Councilmember Samuelson to establish November 13, 2012 as the date to conduct a public hearing to consider proposed modifications to Development District No. 1; Tax Increment Financing District No. 8; and direct staff to prepare a resolution for consideration at a future meeting to decertify T11F District 19. 5 Ayes, 0 Nays-Motion Carried 2. Consideration of Resolution Adopting the Proposed Tax Levy for Taxes Payable in 2013 2 Considaatimof and Setting the Council Meeting Date for the 2013 Budget Discussion with Public Comment ReSO]WonArg the ftposedTax Lmy for and the Detemunation of the Final 2013 Tax Levies Meeting. Report No. 12-222. Taxes Payable in 2013 and Resolution No. 12-069. seeing the Courc7