HomeMy WebLinkAbout1989-11-01 WC Auditor-Treasurer Ltr to OPH y �, t y(',TON COG
WASHINGTON COUNTY
GOVERNMENT CENTER �QV
,yU SrRY•pRGGR ESSa OFFICE OF AUDITOR - TREASURER
14900 61ST STREET NORTH STILLWATER, MINNESOTA 55082
6121779 -5408
R. H. Stafford Mary Lou Larson T. R. Greeder
Auditor - Treasurer Executive Assistant Asst. Auditor - Treasurer
Pam Mattila, CPA Gary Poser Nancy McPherson
Finance Manager Tax Manager License - Records- Manager
November 1, 1989
LaVonne Wilson, Administrator
City of Oak Park Heights
14168 57th St N.
Stillwater, MN 55082
Dear LaVonne:
Enclosed please find certification of your economic tax increment
financing (TIF) district for the St. Croix Mall. During the
certification process, the county auditor determines the economic
adjustment factor. The factor has been determined to be 1.233046.
The submitted TIF plan used an adjustment factor of 1.0191 in
calculating the projected tax increment. The difference in the
actual adjustment factor and the plan's factor is due to a
combination of the following:
1. The plan's factor is taken from an inflation factor estimated
by the county assessor based on a request from Mr. Brad
Henning of Watson Center Inc.
2. The request lists 2 parcels (Lot 6 Block 2, Lot 10 Block 2)
which are not in the submitted TIF plan.
3. The parcels in the TIF plan were created in the platting of
St. Croix Mall P.U.D. 2nd Addition. In order to calculate the
economic adjustment factor, the value for the 5th preceding
year must be determined from the original parcel numbers
before the St. Croix Mall P.U.D. 2nd Add plat. The request
states the current lot and block numbers have been matched
with the same land area in 1984. The request lists 3 parcels
(61401 -2000, 61401 -2050, 61401 -2450) which in fact are not
part of the current lot and block numbers. This results in
extra value added to the 5th preceding year which results in a
lower inflation factor.
4. The inflation factor was based on market values. The economic
factor is to be calculated on tax capacities (formerly known
as assessed value).
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Washington County does not discriminate on the basis of race, color, national
origin, sex, religion, age and handicapped status in employment or the provision
of services.
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I have talked with Bob Voto, Dan Willson and Brad Henning regarding
these differences. Mr. Wilson suggested the possibility of
determining an economic factor based on the increase in commercial
value over the entire city over the previous 5 years.
I discussed this possibility with Jerry Silkey of the Department of
Revenue. It is my understanding that adJustments have been made to
economic factors when the increase in value was not due to normal
economic growth. This would normally happen when the classification
of the property had been changed during the previous 5 years. An
example would be from Agricultural to a Commercial classification.
The increase in tax capacity (assessed value) would then have been
partially due to the change in class. In such cases the economic
factor has been calculated on the period of time the parcel was
classed as commercial.
In the St. Croix Mall scenario, the property has been classified as
commercial throughout the entire 5 year period. Therefore the
increase in value does reflect normal economic growth and an
adJustment to the economic factor is not warranted.
At this time the only calculation which would change the economic
factor would be a change in the 1983 market values as determined by
the county assessor and their corresponding tax capacities. At Mr.
Henning's request, I have sent him the numbers which were used to
calculate the economic factor. If the 1983 market values are changed
through discussions between Mr. Henning and the county assessor, the
economic factor will be recalculated and certified to you at that
time.
If you have any questions regarding this matter please feel free to
contact me at 779 -5415.
Sincerely,
ary A Poser, Tax Division Manager
For
0 �H. Stafford, Auditor - Treasurer
cc: R.H. Stafford
Scott Renne
Bob Voto
Dan Wilson
Brad Henning
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