2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018

NOTE 20 – TAX INCREMENT FINANCING (CONTINUED)  TIF District No. 10 was established in 1996 for the purpose of establishing multifamily rental housing. River City Centre is 52-units of multifamily rental housing owned and operated by the Scott County Community Development Authority (CDA). Under this agreement, up to $2,115,000 in development costs would be reimbursed over twenty-five years with the final year being 2024. During the year ended December 31, 2018, the City generated $56,972 of tax increment revenue and made payments of $51,275. The available balance at year end was $2,969,658.  TIF District No. 14 was established in 2015 as an economic development TIF. J&J Minneapolis/SanMar is a wholesale apparel and accessories distribution company. This TIF required the creation of 150 new full time jobs in Shakopee. The first year of disbursement occurred in 2016 and the final year will be in 2024. Under this agreement, up to $2,000,000 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2018, the City generated $300,997 of tax increment revenue and made payments on the pay-as-you-go note of $270,897. The available balance at year end was $1,305,249.  TIF District No. 15 was established in 2015 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80-unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2018, the City generated $178,416 of tax increment revenue and made payments of $120,574. The available balance at year end was $735,091.  TIF District No.16 was established in 2015 for the construction of a facility. Rahr Malting Company produces and distributes malt and industry related brewing supplies. Under the agreement, up to $1,883,086 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2018, the City generated $237,425 of tax increment revenue and made payments of $230,302. The available balance at year end was $1,543,784.  TIF District No.17 was established in 2016 to upgrade the roads surrounding the expansion of Amazon.com. The total amount authorized was $5,698,326 with 40.7% ($2,319,076) of these funds going to the City of Shakopee and 59.3% ($3,379,250) going to Scott County. Under the agreement, up to $5,698,326 of development costs will be reimbursed through tax increment over a 9 year period to the City and County. During the year ended December 31, 2018, the City generated $883,421 of tax increment revenue and made payments of $519,154 to the County and $356,316 to the City. The available balance at year end was $2,638,649 for the County and $1,810,771 for the City.

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