BY COUNCILOR GILBERT:
RESOLVED, that, pursuant to the provisions of Minnesota Statutes, Section 469.176 Subd. 1(b), Duluth Tax Increment Financing District No. 6, is hereby decertified.
FURTHER RESOLVED, that the city clerk is hereby requested to transmit a copy of this resolution to the St. Louis County auditor.
STATEMENT OF PURPOSE: The purpose of this resolution is to formally decertify Tax Increment Financing (TIF) District No. 6.
TIF District No. 6 was created in late 1985 in order to foster development of the Lake Superior Paper Industries development in the West Duluth/Spirit Valley neighborhood. It was subsequently also used to assist in the development of Superior Recycled Fibers Industry adjacent to the paper mill. Tax increment bonds were sold as part of the financing of both projects.
Because of litigation which was going on at the time that DEDA was created, it was decided to leave TIF District No. 6 with the city rather than transferring jurisdiction of it to DEDA. Therefore, the city continues to be the responsible entity with regard to this district.
The outstanding debt for SRFI was paid off in 2003. The remaining debt for LSPI was paid off in September of 2005. Stora Enso as the owner of both projects has deposited sufficient funds with the bond trustee to pay off any remaining fees or charges associated with the debt, making the further use of tax increments for that purpose unnecessary and making it possible to decertify the district which will allow the tax increments generated to go to the various taxing jurisdictions for their general funds.
TIF District No. 6 is currently generating $648,793.23 in tax increment revenue per year, based on current values and levies. Upon decertification, $142,734.51 of this amount will become available to the city, $398,164.41 will become available to the county, $67,214.98 will become available to ISD 709 and $40,679.34 will be applicable to other special levies. This does not include the state’s property tax amount which is not included for tax increment purposes.