Chaska council and EDA extend temporary TIF transfer authority, add interest to spending plan
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Summary
The council and the EDA adopted resolutions extending temporary authority to transfer pooled TIF dollars and to permit use of accrued interest, pushing the construction deadline to Dec. 31, 2026. Staff said the pooled transfer was about $2.25 million in 2022 and grew to about $2.5 million with interest by end of 2024.
Chaska — The Chaska City Council on Nov. 17 held a public hearing and adopted a resolution amending a temporary transfer spending plan for three tax-increment financing (TIF) districts, and the Chaska Economic Development Authority (EDA) adopted a companion resolution.
City staff said the legislature temporarily expanded allowable uses for transferred TIF revenue in 2021 and that a 2025 legislative change extended the construction-start deadline to Dec. 31, 2026, and allowed the use of interest accrued on transferred funds.
"In 2022, the amount transferred was approximately $2,250,000," staff said, and with interest earned, "as of the end of 2024, it was $2,500,000." The spending plan set broad goals for using pooled funds in downtown Chaska and the city retains council approval for any specific project spending.
Following an uncontested public hearing with no speakers, the council voted to adopt Resolution 2025-82 amending the spending plan to reflect the extended deadline and the authorized use of accrued interest. The EDA also voted to adopt EDA Resolution 2025-84 at its meeting immediately after the council session.
The city said the amended plan identifies three housing-related TIF districts as the source of pooled funds and provides flexibility to direct funds to identified downtown development goals or other city opportunities, subject to future council approval.