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Shakopee Economic Development Authority
April 6, 2021
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| | | | | | | | | FROM: | Nate Reinhardt, Finance Director | | TO: | President and Commission Members |
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| | | | | | | | Subject:
Amending interfund loan for TIF #19 (Riverfront Bluff Redevelopment)
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| | | | | | | | Policy/Action Requested:
Adopt Resolution E2021-002 a resolution amending Resolutions E2018-001 and E2019-003 regarding an interfund loan for advance of certain costs in connection with Tax Increment Financing District No. 19. |
| | | | | | | | Recommendation:
Approval of the resolution to increase the total loan by $300,000 to fund costs associated with the District and continue the interest rate of 4%. The loan will be repaid from proceeds of TIF District No. 19. |
| | | | | | | | Discussion:
Council/EDA previously approved a total interfund loan in the amount of $1.1 million to fund the acquisition or property, testing and administration costs associated with the district. The increase in the interfund loan will allow the City to recover any public improvement and administrative costs from future TIF District 19 revenues. |
| | | | | | | | Budget Impact:
If approved, the resolution increases the available amount by $300,000 that can be used on eligible TIF costs, including infrastructure improvements and administration. These costs would be repaid out of TIF District #19 revenues.
If not approved, any costs prior to the receipt of tax increment cannot be applied to the TIF District and will need to be absorbed by other funds. |
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