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The tipster who led police to fugitive murder suspect Ty Hoffman will receive the $40,000 in reward money that was offered for information leading to the killer of Kelly Phillips outside an Arden Hills gas station last month.

Hoffman, 44, of Minneapolis, was quietly arrested Thursday morning near an Arby's restaurant in Shakopee, exactly one month after Phillips, 48, was fatally shot following a dispute between the former romantic and nightclub business partners.

The person who noticed Hoffman lingering around several retail outlets has chosen to remain anonymous, said Dave Michela, a longtime friend of Phillips who assisted in collecting the reward money. Authorities have only revealed that the person is a woman.

In the final days of Hoffman's time as a fugitive, the reward money jumped from $1,000 to $10,000 to $25,000 and finally to $40,000.

Assistance with collecting donations to the reward fund came from the Minneapolis-based nonprofit Council on Crime and Justice.

"This was a textbook example of a community coming together in pursuit of justice," former Minneapolis Council Member Gary Schiff, president of the Council on Crime and Justice and a friend of Kelly Phillips, said in a statement Tuesday. "Generous donations to the fund helped drive media attention to the case, and the media coverage led the tipster to identify the suspect."

Kelly's friends and family also released a statement Tuesday, which read in part: "Words cannot express the thanks we extend to the individual who led law enforcement to the suspect. We thank all who stayed alert and called in tips, and we thank the individuals and businesses who donated so generously to the reward fund."

The reward money is considered "ordinary income" and will be subject to state and federal taxes, said Minnesota Department of Revenue spokesman Ryan Brown.

In the meantime, the investigation into Phillips' killing continues. The Ramsey County Sheriff's Office is still looking for the alleged murder weapon, a Glock semiautomatic .45-caliber handgun, camouflage in color. It also is investigating whether Hoffman received help while on the lam.

It was unclear where Hoffman had been staying while evading police; however, police say he did rob a bank in Blaine. Charges in that crime are pending.

Paul Walsh • 612-673-4482