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a. District 1-9: The Developer Agreement or TIF Note in the City files is not signed. There was documentation of the developer's expenditures on file. The Developer may have an executed copy of both that he may be willing to provide for our records. If not,the Developer Agreement and TIF Note need to signed be as soon as possible. b. District 1-4: There was no signed TIF note in the files. We have contacted Briggs and Morgan, your TIF attorney, to request that they review their files for this documentation. They do not have any additional documentation. 7) District 1-8, 1-10 and 1-11 include parcels that are in the industrial park that was originally District 1-3. The City bought land in the industrial park. A Rural Development Loan was issued to finance the infrastructure in the original District. District 1-3 has since been decertified. The following issues need to be resolved with respect to the industrial park project. a. Interfund loan resolutions need to be passed for the land write down for Districts 1-8 and 1-10. The City is repaying itself for the cost of the land. Your auditor will need to set up the obligation according to the resolution. b. District 1-8 and 1-10 appear to be transferring increment for administration costs incurred. There needs to be documentation on file to support an amount. The payments need to be monitored so payments are not made in excess of the documented costs incurred or in excess of the 10% admin allowance allowed by law. c. The developer agreement for District 1-11 anticipates the project to be completed in phases. The city should be aware that if and when the developer is ready to proceed with Phase II,that the project needs to be in accordance with the existing development agreement. We recommend the following: 1) Examination of the Industrial Park project to verify the sources and uses of funds,where the revenue and expenditures have been coded, and an analysis of the future sources and uses of funds. There may be an opportunity to utilize tax increments for the rural development loan payments. 2) Recreate and verify all the Developer payments. In order to assure that the payments have been calculated appropriately, it is necessary to review the increments received from the county and all the payments made to the developer. 3) Organize the City's TIF records to allow for monitoring of compliance to the TIF law. Create a Tax Increment District Summary or abstract that outlines the major issues in each of the TIF Districts. 4) Ehlers and Associates provides, at no charge, a TIF Basics workshop for our clients. If the council would find a session like this helpful,we would be available to conduct a workshop.__ 3060 Centre Pointe Drive «Phone» Fax:(651)697-8555 Roseville,MN 55113-1105 «Email_Address» http://www.ehlers-inc.com