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EDC Minutes December 20, 2002 Page 3 buyer for the property. On Tuesday (12/17) the broker informed Backman that the developer had made a written offer on both the BP Amoco site as well as the vacant property owned by Simon sisters (Judy Wright & Linda Miller). The name of the end user has not been released by the developer at this time. Backman also discussed a potential developer that may acquire both parcels next to the theater. 6. EDC BUSINESS A. Discussion of Tax Abatement Policy & Usage. He summarized the history and basic features of tax abatement. The State of Minnesota initially adopted its tax abatement policy in 1997. The City of Mounds View adopted its current policy on tax abatement in October 2000 (Backman previously e-mailed the M.V. Policy to members). Abatements were designed to give each jurisdiction a voice in economic and redevelopment efforts. The abatement is a tax rebate rather than an exemption from paying taxes. (The taxpayer pays taxes on the abated property in the same manner it would if the taxes were not being abated.) The property taxes on land and structure for a new or old building can be captured by the political subdivision and used to offset development costs. The maximum term of the abatement is ten years if all jurisdictions participate. If one or more entities decline, the maximum term is 15 years for all participating entities. Since 2001 property tax changes, interest in tax abatement as an economic development tool has increased. Backman distributed additional handouts to members—an Abatement summary by Ehlers, and Tax Abatement policies for the cities of Elk River and Roseville. Backman asked that the members review the tax abatement handouts so that recommendations for revisions of the Mounds View Abatement policy can be made to the EDA. B. Consideration of Resolution 02-EDC-35 setting the 2003 Meeting Schedule. The EDC’s regular meetings are currently held on the third Friday of each month. McDonald moved and Helgemoe seconded the approval of the proposed meeting schedule. This was approved 4 to 0. C. Other: Field would like to have members consider at the January meeting goal and objectives for 2003 for the Commission. 8. ADJOURNMENT There being no further business before the Commission, Chair Belting adjourned the December 20th meeting (Helgemoe moved, McDonald seconded motion) of the Economic Development Commission at 8:56 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator \\Ntserver\CityHall\DATA\GROUPS\ECONDEV\EDC\Minutes\Min02\12-20-02.doc