05/02/2011 Council Packet - Laserfiche WebLink

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on 23 properties that are a substantial distance from water mains and therefore are the greatest challenge to redevelop over time. Of those properties, four are currently delinquent on property taxes and two are vacant. Market Analysis City taxes from all commercial and industrial properties in Lino Lake amounts to $1,645,000. City taxes from all properties inventoried is approximately $65,000. Staff performed a subjective assessment of properties that are either currently vacant or have an increased likelihood of becoming vacant in the future. If all those properties were to cease paying taxes, the City would lose approximately $19,000 in taxes annually. This is approximately 1.2% of the City portion of all commercial and industrial properties in the City. Action Steps EDAC has identified courses of action the City could take in regards to nonconforming uses and properties that are underserviced, zoned, guided or used as commercial /industrial and don't have immediate access to infrastructure: Action 1: Allow market forces to determine the redevelopment of nonconforming properties. Action 2: Expedite the redevelopment of nonconforming properties by providing funding sources for the acquisition of priority properties as they become available; extend utilities to developable sites; provide business loans for special assessments or rehabilitation. This requires the City Council to determine it wants to make a financial commitment to redevelopment and how those funds can be made available. Options available for the City Council to consider: • Tax Increment Financing • Tax Abatement • Special Assessments imposed upon the property owner(s) to pay for improvements that benefit the property • Establishing sewer /water funding for economic development zones • Developing a policy of using pooled TIF for a revolving economic development fund. This allows 20% or 25% of total new increment from TIF districts to be spent outside the boundaries of the TIF district • Encourage private equity in the form of an Economic Development Corporation Other options to provide public funding sources to spur public investment in private development entail an additional tax levy including: • Anoka County HRA levy • Lino Lakes Economic Development Authority (EDA) levy