08/24/2009 Council Packet - Laserfiche WebLink

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Finance Tools Economic development adorns require a framework for financial- decision mid guided by investment of public dollars to achieve economic development objectives several key pp • Financial resources are limited. The city has limned funding to apply to economic development initiatives, so the use of resources must be targeted to achieve the greatest effect on the community. • Financial decisions require long-term perspective. The airrer t use of financial resources may reduce monies available in the future. In evaluating short-term opportunities, it is important to question the tang -term impact on amity development. • Public funds should lead to private investment While this section focuses on public finance actions, economic development cannot become reality without private investtment. The use of public funds should be targeted to actions that encourage private investment in Lino Lakes. A complete examination of the tools available to the city is not possible, but providing an overview of the most commonly used and legal important dvice � for actual projects should be made using appropriate Tax Increment Financing Tax inaernent financing (TIF) is the primary development finnance tool available to Minnesota cities. TIF is the property tax simple byby new develop in ront (or �i c�� and used to finance activities needed to encourage the development The challenge in using TIF Des with the complex and ever-changing statutory limitations. These complexities make it impractical to provide a thorough explanation of tax increment firandng as part of this plan. Instead, this section highlights the use of TIF as it relates to the implementation of the plan. 7)'pe of 77F Districts Four types of TIF districts have application to the plan. • Redevelopment • Renewal and Renovation • Horsing • Economic Development Tax Abatement Tax wit acts like a simpler and less powerful version of tax increment financing. With TIF, the dty control the entire property tax revenue from new development Under the abatement statute (Minn esota Statutes, Sections 469.1812 through 469.1815), the aty; county, and school district have independent authority to grant an abatement. Special Assessments Public improvements are often financed using the power to levy special assessments (Minnesota Statutes Chaps 429). A special assessment is a� � a period of years. part of the costs associated with improves, and the retabititation of This tool can be applied to both the construction of new improvements ruing improvements. •