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MINUTES <br />CITY COUNCIL <br />NOVEPSBER 8, 1995 <br />With regard to District No. 2-1, Morelan asked if there <br />were sizeable funds within the District that could be <br />used toward the cost of reconstructing Little Canada <br />Road. <br />Fifield replied that there was some excess in that <br />District. However, those funds will be needed to meet <br />development needs along Country Drive. The City could <br />take the funds for use along Little Canada Road once <br />the District is expanded, but it is difficult to <br />balance those two competing objectives. Fifield <br />recommended that without some compelling reason, the <br />excess funds should be used along Country Drive. <br />Fifield explained that he is proposing that District 3- <br />2 be created and District 3-1 be decertified. <br />Boundaries of the two districts are identical. Fifield <br />pointed out that District 3-1 was created in 1993 to <br />bring about a development proposal which did not <br />happen. Subsequent to that, property values fell <br />significantly. The current value is below the base <br />value at the time the district was established. Any <br />additional development in the area would be used to <br />bring property values up to the base value before any <br />TIF revenue is generated. Therefore, putting a new <br />district in place will re-establish the base value. <br />Fifield also reported that Briggs & Morgan is <br />recommending that the City establish the District as a <br />redevelopment project area. This will give the City <br />housing and redevelopment authority powers. <br />Fifield reported that the Planning Commission has found <br />that the TIF District proposed is in conformance with <br />the general plan for the City as a whole. The District <br />is in conformance with the plans in the Redevelopment <br />Guide, and meets the "but for" test as defined under <br />State Statutes. <br />Fifield reported that he is recommending that the TIF <br />District be excluded from fiscal disparities. Tax <br />values will be captured, but the City will be required <br />to take its contribution to the fiscal disparities pool <br />from other taxable properties within the City. There <br />is not enough incremental revenue from the district to <br />make its own contribution to fiscal disparities. The <br />City will not be subject to LGA or HACA penalties, <br />instead opting for a"local match". <br />Fifield reported that the City has complied with the <br />statutory process required. A letter has been received <br />from Ramsey County that endorses the City's plan for <br />redevelopment looking to increase the number of jobs <br />4 <br />