12/05/1988 Park Board Packet - Laserfiche WebLink

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some districts. "Several cities in Hennepin transactions County have districts which are or will soon produce increment in excess of their debt ser- vice requirements;'Spartz said. • Adequate TIF reform can't be achieved un- til the affected county and the school district are given substantive roles in the approval of the district,he said. He said they should be BANKING AND SAVINGS,EA. BANKING AND SAVINGS, EA. BANKING AND SAVINGS,F.A. allowed to veto proposed TIF districts that Has Provided 0/ Has Provided Has Provided aren't"in the best interest of the entire com- $2,700,000 $915,000 $9,000,000 munity" Permanent Financing Permanent Financing Interim Construction Financing TIF Use Continues to Grow for a for a for a Jody Hauer of the Citizens League agreed 76,000 SF 46 Unit 126,000 SF that the 1989 Legislature needs to take a close Retail Center Apartment Complex Shopping Center look at the tax increment law. "1988 legisla- Eden Prairie, MN St. Paul, MN Minneapolis, MN tion was adequate,but not sufficient"she said at the hearing. "TIF activity has continued to grow in Minnesota at a great rate. In 1988,there was a 25 percent increase in TIF that follows a 25 BANKING AND SAVINGS,EA. BANKING AND SAVINGS, E.A. BANKING AND SAVINGS, F.A. percent jump from 1986 to 1987.This year the Has Provided Has Provided Has Provided assessed valuation captured for TIF topped $10,400,000 $1,675,000 S3,000,000 the $1 billion mark for the first time with Permanent Financing Permanent Financing Permanent Financing $1.246 billion,'according to Department of 1<x a fora for a Revenue's data published Nov.9. 444 Unit Medical Office Building 159 Unit But Hauer added that the growth in the tax Apartment Complex Golden Valley, NIN Apartment Building base is considerably less.The total assessed Little Canada, MN Inver Grove Heights, MN value of property in those cities with TIF projects increased about 9 percent between last year andthis year(compared with the 25 percent growth in value captured for TIF). Ironically,Hauer noted,the bulk of the TIF TCF Financing for projects are in the Twin Cities are,where the economy is healthier than in the rest of the ® Apartments 0 Office Retail Centers La Warehousedndustrial state. More than 84 percent of the assessed value captured for TIF in Minnesota is in the seven-county metro area,she said,and two- thirds of the metro TIF assessed value is in Hennepin County" One indicator of a city's use of TIF is how much of its tax base is tied up in TIF projects. T In the metro area,Chanhassen has the highest TCF BANKNTO AND D SAVINGS O'S� F.A. percentage of its assessed value in TIF with more than 22 percent. Ten metro area cities have between 10 percent and 20 percent of (612) 370-1603 their tax base in TIF.They are Minneapolis, Robbinsdale, Hilltop, Chaska, New Gcr- Commercial Lerulinr; many, Waconia, Falcon Heights, Savage, 801 Marquette Avenue Shakopee and Newport. Fifteen cities and F®R Minneapolis, Minnesota 55402 towns to greater Minnesota fit in this category. . WHERE NUNN�f+..SOTA BANKS � "The question about whether TIF is being Equal opportunity L�nJcr EEwoEa overused is one that is not easily answered"