08/10/2011 P&Z Packet - Laserfiche WebLink

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While TIF District No. 1 -10 was established primarily to help develop manufacturing and warehouse improvements in that district, those improvements were part of the impetus for the County Road 23 /Interstate 35W Interchange (along with the new development in Legacy at Woods Edge). In fact, tax increments from TIF District No. 1 -10 are also pledged to pay part of the debt service on the TIF Bonds described above. The special legislation that has been approved and signed by the Governor includes the following provisions: 1. It allows the EDA to collect increment from TIF District No. 1 -10 through the end of 2023. This extension matches the period when the TIF Bonds will be paid off. Increment from TIF District No. 1 -10 would provide approximately $170,000 to $200,000 /year to protect Lino Lakes residents from higher property taxes and to get it back on the tax roll. This will save residents approximately $20 annually (based on a $200,000 home). 2. After February 1, 2011, all tax increment from this district must be used only to pay debt service on the Improvement Bonds or the TIF Bonds (or any future refunding bonds). 3. During the extended period, expenditures are exempt from the pooling and five year rules (Section 469.176, subd. 3), and from the requirement that increment must assist only manufacturing and related uses (Section 469.176, subd. 4c). These exemptions are necessary to permit the use of increment for the TIF Bonds and Improvement Bonds. The purpose of this extension is to provide revenues needed to replace the special assessments that are not being paid on the tax - forfeited property, and the lost tax increments from development that has not yet occurred. The City is continuing its efforts to develop Legacy at Woods Edge, and over the long term remains confident that the additional development will provide tax base and amenities for the residents of the city and the broader region. The city can place assessments back on the property as it develops, so this extension of TIF District No. 1 -10 is a stop gap measure until development occurs. As assessments and tax increments from the property become available, those revenues will reduce the need for the additional increment from TIF District No. 1 -10. After the special legislation was passed, the City Council, Anoka County and Centennial School District approved the legislation. As required by Minnesota Statutes, Section 469.175, the Development District and TIF District Plan must now be modified to reflect the extended duration of the district and the increased budget, and to ensure that the modification conforms to the Comprehensive Plan. While it is not expressly stated in the Statute, the finding that the modification conforms to the Comprehensive Plan is typically made by the Planning & Zoning Commission of the City. The City Council will hold a public hearing on August 22, and the EDA and Council will then consider modification of the district. ANALYSIS When a Development Program is created or modified it is the role of the Planning and Zoning Board to make a finding that the modification is consistent with the Comprehensive Plan. On • • •