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MEMORANDUM <br />To:CityofCenterville <br />From:TammyOmdal <br />Date:October4,2019 <br />Re:TaxIncrementFinancingDistrictNo.1-8 <br />TheCityofCenterville(the“City”)receivedanapplicationforfinancialassistancefromTrident <br />Development,LLC(the“Developer”)fortheproposedconstructionofamultifamilyhousing <br />development.Theproposedprojectinvolvestheconstructionofanapproximate53-unitapartment <br />buildingwithasmallretailcomponent,withsurfaceparkingspacesplusdetachedgaragebays(the <br />“Project”).ThesitefortheProjectisonvacantlandownedbytheCitylocatedatCentervilleRoad <br />betweenSorelStreetandHeritageStreet. <br />TheCitywillholdapublichearingonOctober9,2019toconsidertheestablishmentofTaxIncrement <br />Financing(Housing)DistrictNo.1-8(the“TIFDistrict”)withinDevelopmentDistrictNo.1.The <br />reasontoconsidertheestablishmentoftheTIFDistrictistoprovidetheauthorityfortheCityto <br />considerfinancialassistancefortheProjectatafuturedate.Thepurposeofthismemorandumisto <br />provideinformationontaxincrementfinancingauthorityandprocessforestablishingtheTIF <br />District,alongwithasummaryoftheproposedplanfortheTIFDistrict. <br />BackgroundonTIFAuthority <br />TIFisastatutoryfinancingtooltopromoteeconomicdevelopment,redevelopment,andhousing <br />developmentinareaswhereitwouldotherwisenotoccur.TheestablishmentofaTIFdistrictallows <br />theCityto“capture”therevenuesgeneratedbytheincreaseinnettaxcapacityresultingfromnew <br />developmentwithinadesignatedgeographicareacalledaTIFdistrict.Therevenuecomesfromthe <br />increaseinpropertytaxes,withsomelimitedexceptionstothetaxesthatmaybecapturedwithina <br />TIFdistrict. <br />TheCitymayusetaxincrementstofinancepublicimprovementsandotherqualifyingcostsrelated <br />tothenewdevelopmentthatgeneratedtheincreaseinnettaxcapacity.Certainfindingsmustbe <br />madebytheCitywhenapprovingaTIFdistrict,includingafindingbytheCityCouncilthata <br />project,asproposed,isfeasibleonlythroughassistance,inpart,fromtaxincrementfinancing.Thisis <br />commonlyreferredtoasa“butfor”finding. <br />NorthlandSecurities,Inc.150SouthFifthStreet,Suite3300,Minneapolis,MN55402,MainTel.612-851-5900 <br />www.northlandsecurities.com <br />MemberFINRAandSIPC|RegisteredwithSECandMSRB <br />2 <br /> <br />