01-24-1990 Council Agenda - Laserfiche WebLink

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Mr. Terry Schutten January 16, 1990 Page 2 is contrary to the County's best interests and creates an undue financial burden. Neither proposition is supported in the County's draft TIF strategy report. How much tax base should be within a TIF district at any one time is an important question. However, the County's report provides no basis for answering that question. Further study and discussion on that topic is warranted. In fact, TIF is virtually the only tool communities have to spur economic development and revitalize declining areas. Overly restrictive controls on the use of TIF could lead to slower tax base growth. The proposed strategy to end pooling of tax increment district funds would increase the risks involved in redevelopment and make redevelopment of the larger blighted areas in the County nearly impossible. It is contrary to orderly community development and sound risk management practices. The strategy which was aimed at finding ways to cover the County's TIF administration expenses raises a legitimate concern. Some means to cover those costs should be found. Other specific concerns and comments follow. 1. The evaluation of the impact of TIF on Ramsey County ignores any benefit to the County from the elimination of blight, increased efficiency in the use of existing public facilities, provision of new jobs, housing creation, and other physical benefits funded through TIF. While local agencies introduce TIF projects, the beneficiaries of these projects are as much County residents as city residents. 2. The financial impact of TIF on the County are extremely one - sided. The report implies there is no long -term benefit to the County from the actions funded with TIF. It presumes every penny of taxable value captured within TIF districts would have occurred without the active involvement of a City using TIF to make growth happen. It also assumes taxable value created in TIF districts would have happened in the same timeframe and to the same level of investment whether a public agency was involved or not. This is a false supposition. Most of the taxable value created in TIF districts has occurred within redevelopment districts. Redevelopment is unlikely to happen without the help of a public entity. According to the County's own figures, more than 75% of the taxable value created within TIF districts has been created within redevelopment districts. Over 90% of those dollars occurred in the County's most urban and fully developed cities, St. Paul, Roseville, and New Brighton. These communities would have limited chances for growth in taxable value without redevelopment funded by TIF. 3. The report critiques and actually suggests the elimination of TIF without either offering an alternative funding mechanism or weighing the need to achieve the goals to which TIF revenues have been Page 97