09-09-1987 Council Agenda - Laserfiche WebLink

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r MEMORANDUM T0: FROM: DATE: northwest Essociated consultEnts, inc. Little Canada City Council Dan Wilson 14 July 1987 RE: Thunder Bay TIF Project Alternative Project Structure FILE NO: 758.09 - 87.45 JUL 15 1987 CITY OF LITTLE CANADA I met with Mr. Robert Voto and Mr. Chlebeck on Monday, July 13, 1987, per their request. Mr. Voto questioned the current structuring of the Thunder Bay TIF project. He was concerned that this was a very small project to expend the City's time and money on. The second, and perhaps most important item he recognized was the large amount of tax increments that potentially could be generated by this project. Mr. Voto questioned if there wasn't some way surplus funds could be used to assist other economic development projects throughout the City. The short answer to his question is that there is a way to make these potential funds available for other eligible tax increment projects. The Thunder Bay TIF project as currently structured is a very simple single purpose project. The City is only seeking to capture sufficient tax increments in order to repay the approximate $40,000 the City would advance to the project. Even though we anticipate it only necessary to capture the tax increment for two years, the plan does provide for the City to receive the increments for the maximum eight years. The City has five years during which to amend its boundaries, which would allow using surplus Thunder Bay tax increments elsewhere. The current plan structure meets the intent of the tax increment statutes even by tax increment financing critics. Mr. Voto raises a very important question. I believe his intent is to provide the City with the greatest amount of flexibility in dealing with the community's development activities by maximizing your opportunities without your making any firm commitments at this time. 4601 excelsior blvd., ste. 410, minneapolis, mn 55416 (61 2) 925 -9420 Page 14