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1 <br /> <br />ECONOMIC DEVELOPMENT ADVISORY COMMITTEE <br />AGENDA ITEM 3A <br /> <br /> <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br /> <br />EDAC MEETING DATE: February 3, 2022 <br /> <br />TOPIC: ED Strategic Plan Implementation – Redevelopment & <br />Land Acquisition <br /> <br />BACKGROUND <br /> <br />The ED Strategic Plan Priority 4, Identification of Potential Redevelopment Areas and Strategic <br />Acquisitions identifies the need to develop a strategy for City acquisition of land when available. <br />Identifying potential funding sources is one of the largest considerations. <br /> <br />Options for Funding Redevelopment and Strategic Acquisitions <br /> <br />The City has a number of tools available to assist with land acquisition. A list of possible <br />resources and a brief description are listed below: <br /> <br />Tax Increment Financing (TIF). As development occurs, the additional taxes generated from <br />new development are used to assist the developer with infrastructure, land acquisition, and other <br />eligible costs. The City’s Financial Assistance Policy establishes guidelines for use. <br /> <br />Tax Abatement. Similar to tax increment, but only the City portion of taxes are available to <br />assist with Redevelopment. The City’s Financial Assistance Policy establishes guidelines for <br />use. <br /> <br />Pooled TIF. The City may designate up to 20% of a TIF districts revenue for pooling purposes <br />and use those revenues for eligible economic development costs outside the TIF district. <br /> <br />Interfund loans. An interim funding program could be developed using cash balances of certain <br />city funds such as the Trunk Utility Area and Unit fund. This would be subject to identification <br />of a permanent funding source that would repay the fund. <br /> <br />Anoka County HRA. The County has economic development authority to levy for economic <br />development purposes. This is a property tax increase on all Lino Lakes taxpayers. At existing <br />rates, this would generate approximately $380,000 annually. <br /> <br />Lino Lakes Economic Development Authority (EDA) levy. The City has an existing EDA with <br />statutory authority to levy for economic development purposes. An EDA levy up to .01813 <br />percent of taxable market value. This would be approximately $377,000 annually. <br /> <br />