HomeMy WebLinkAboutMinutes06_0926City of Falcon Heights
Planning Commission Minutes
September 26, 2006
PRESENT: Commissioners Lageson, Lukermann, Mercer-Taylor, Rodich, and Ryan. Also present were City Administrator Justin Miller and Staff Liaison Deb Jones.
ABSENT: De Leo, Tracy, City Council Liaison Kuettel
The meeting was called to order by Patrick Ryan, Commission Chair, at 7:03 p.m. The minutes of the August 22, 2006 meeting were approved by consensus.
Modification to the Development Program for Development District #1:
City Administrator Miller gave a presentation on the background of this agenda item, beginning with an overview of tax increment financing as a tool used by cities to facilitate development.
This means cities can use the increased tax revenue generated by development to finance projects throughout a defined development district.
Development District #1 was created to facilitate the construction of 1666 Coffman, but the taxes produced can be also used for very specific kinds of infrastructure projects that fall
within the development district, under the laws that were in effect at the time the district was created. However, much of the City is outside the district. The present district goes
from Hoyt to just north of Larpenteur, plus the area between Cleveland and Fairview up to Roselawn.
The proposal under discussion is to expand the boundaries of the development district (not the TIF district) to encompass the whole City of Falcon Heights. This would not remove any
properties from the tax rolls, change any property taxes or remove the requirement to decertify the district by 2013. However, it would allow the City to use available funds to pay for
projects such as the Roselawn Avenue reconstruction, now nearing completion, which was not in the original district. Falcon Heights tax dollars would remain in the City to help fund
projects such as sidewalk replacement and street repair.
The public hearing on the question will be held by the Council, but the Planning Commission is required to determine whether the proposed amendment conforms to the City’s comprehensive
plan and make a recommendation to the Council. Since no new projects or changes in zoning or land use are being proposed, staff believes that the proposal does conform to the comprehensive
plan and recommends Planning Commission approval.
Commissioner Lageson asked how much excess revenue has been generated. Mr. Miller said the current balance is about $800,000. The City would only be able to retain about 20% of that
amount if the district were to be decertified at this time. The City is not proposing to use all $800,000, and the excess will be returned at the end.
Mr. Lageson asked if other projects such as Bullseye Plaza (now Falcon Crossing) are included. Mr. Miller said, no, only 1666 Coffman. The other projects are in different TIF districts
but the development district is the same.
Commissioner Rodich said he understood these districts are tied to a specific project and asked for some clarification. Mr. Miller explained that this development district can extend
beyond the boundaries of the original project (1666 Coffman) and the infrastructure related to that project. This would not be true if the City were to create a new TIF district today;
the rules are much more stringent now. For example the development district for the Falcon Heights Town Square project (the “Southeast Corner”) can only be used for that project and
surrounding infrastructure. District #1 has already been modified several times.
Commissioner Mercer-Taylor said that there must be language in the original documents setting up the district that allows for this kind of modification. Mr. Miller confirmed that is
the case. Responding to a question from Commissioner Rodich, Mr. Miller said that this district is, in essence, “grandfathered in” under the old rules.
Commissioner Lukermann asked if the City anticipates significant infrastructure expenses associated with the Bell Museum. Mr. Miller replied that there would be infrastructure expenses
but they would be incurred by the museum, not the City.
In response to a question from Mr. Lageson, Mr. Miller said that if the City does not use the excess tax revenue for anything beyond paying the debt on the original project, a substantial
amount will be returned to the county and school district in 2013. He said that the financial side will be addressed in the Council meeting; the Planning Commission’s role is to look
at the land use side.
In response to a question from Ms. Lukermann, Mr. Miller confirmed that the “Southeast Corner” is its own TIF district. Although it is included in the proposed (and current) Development
District #1, there are no plans to use these funds for projects there.
After some further clarification of the procedure required of the commission and a brief discussion, Lukermann moved, Mercer-Taylor seconded, that the Planning Commission find the modification
in conformance with the comprehensive plan. The motion passed unanimously.
INFORMATION AND ANNOUNCEMENTS:
Staff Liaison Jones reported that on September 13 the Council approved the new ordinance regarding drive-through businesses. There were some changes from the version approved by the
Commission. The Council restored the restriction to financial institutions but kept other changes recommended by the Commission.
ADJOURNMENT: The meeting was adjourned at 7:30 p.m.
Respectfully submitted,
Deborah Jones, Staff Liaison