Project hinges on City’s outcome with TIF audit


City officials plan to resolve Gaylord’s Tax Increment Financing (TIF) audit issue before breaking ground on the proposed street and utility reconstruction project.

In March of 2005, the City was cited by the Office of the State Auditor for non-complying TIF District projects. Until this issue is resolved, the City of Gaylord will face bonding issues, according to City Administrator Lonny Johnson said.

The State Auditor’s Office appointed Sibley County Attorney Dave Schauer to review the TIF District allegations against the City. In February, Schauer sent a settlement proposal to the City of Gaylord but no agreement has been reached. Schauer and city officials are still in settlement discussions.

City Attorney Doug Nesvig has held several closed meetings with council members to update them on the progress of the TIF audit. According to Nesvig, there will either be a settlement or a hearing. He said details will be made public once the issue is resolved.