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MINUTES <br />PLANNING COMMISSION <br />February 8, 1990 <br />DeLonais stated that the Tax Increment Financing <br />program is not what it should be pointing out that <br />Ramsey County is currently looking at this subject. <br />DeLonais reported that at the last meeting of the <br />Economic Development Committee he requested that <br />someone appear at the January Commission meeting to <br />discuss TIF and how it works since he believed that the <br />Commissioners would benefit by such a discussion. <br />However, this was not done. <br />Herkenhoff asked what the tax loss to the City over the <br />next 10 years will be if TIF is used to assist this <br />project. <br />The City Administrator pointed out that the basis for <br />use of TIF is the "but for" test. That is, the <br />development will not occur but for this assistance. <br />Assuming this, there would be no tax loss to the City <br />because without TIF assistance, the development would <br />not occur. <br />The City Planner pointed out that the developer is <br />required to submit a financial performa showing that <br />the project could not work but for TIF assistance. <br />The Administrator also pointed out that it was his <br />understanding that the site has been available for sale <br />for some period of time and has not developed. <br />Costa replied that this may be because the land is <br />priced too high. Costa pointed out that a property <br />owner can increase his sale price knowing that a <br />project will get TIF assistance. Costa suggested that <br />the City should tell the developer that the land is <br />priced too high for the market and TIF assistance is <br />not going to be available because the land is <br />overpriced. Costa pointed out that the taxpayers are <br />picking up the cost. <br />The Administrator pointed out that the taxpayers are <br />not picking up any costs unless you assume that the <br />development would occur no matter what. <br />Costa pointed out that this is good, developable <br />property that needs no assistance to develop, however, <br />the City is providing TIF. Costa pointed out that <br />there are other, difficult pieces of property to <br />develop that cannot get TIF. <br />Page 12 <br />