07/10/1985 P&Z Minutes - Laserfiche WebLink

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• • • SPECIAL JOINT MEETING July 10, 1985 Page Two Tax increment financing is a means of financing to assemble land to prepare it for commercial /industrial activity. Financing can apply to land, roads, soil corrections and utilities, but not to buildings. The City legally would have to be able to honestly state that the business would not locate within its boundaries without the tax increment financing. For tax purposes, the City would freeze the undeveloped assessed valuation, and then sell bonds to help pay for the development. Taxes received for the developed business - less the taxes due on assessed valuation before development - go directly to the City as a means of repaying bond debts. Taxes due on the assessed valuation before development would go to the County and be dispersed in the usual fashion. The benefit to the citizens in the City would be - the busi- ness operating within the City; the jobs the business would provide; and (after repayment of bond debts) higher taxes collected on the developed business. Mr. Karth explained that this discussion was prompted by the Economic Development Committee because several interested parties have asked about opportunities in Lino Lakes. Mr. Karth feels that the surrounding communities' businesses are beginning to spill over into Lino Lakes. The surrounding communities have tax increment financing programs. New businesses looking for opportunities in Lino Lakes find that they must take the high financial risk of developing from the ground up because there are no existing commercial areas from which to rent. Mr. Wilson mentioned that the media occassionally attempts to create a bad image of tax increment financing. Most often citi- zens do not understand the process and Mr. Wilson felt that the City leaders should clearly understand and become involved. A tax increment financing program can be put into place without the City leaders' involvement, which will be less costly and quicker; however, he encourages City leaders' involvement. Mayor Benson reminded the group that the City has not begun a tax increment financing program or made any steps in that direc- tion to this point. The purpose of this meeting was to introduce the idea to those in attendance and get any feedback. Mr. Wilson thanked the group for the opportunity to introduce tax increment financing to the City. PARK AND PUBLIC LAND DEDICATION / Since this concern was raised by the Planning and Zoning Board, Mayor Benson gave the floor to Mr. McLean, Chairman of the Planning and Zoning Board.