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EDC Minutes June 19, 2009 Page 2 of 4 6. EDC BUSINESS A. Review and Discussion of City Economic Development Goals Community Development Director Ken Roberts reviewed Ms. Steinmetz’s staff report about the EDA’s Economic Development actions from the past year and a half, stating an example that the EDA has turned down all County Road 10 redevelopment proposals during that time. He added that the City would be using most of its Tax Increment Financing funds for the 9-Year Streets & Utilities Improvement Program, which will limit funds for development and redevelopment. Therefore, he said that City staff has the following questions for the EDC: • Can the City reach its goal to redevelop County Road 10 without the use of public financing? • Has code enforcement become such an important issue for the City that Economic Development efforts should focus more on improving neighborhoods? • Are the City’s current Economic Development goals still relevant? Commissioner Johnson stated that due to the economy, now is not the best time to have a deep discussion about Economic Development goals but wondered if City staff wanted to discuss a general Economic Development philosophy. Mr. Roberts said “yes” because the City wants to prepare itself for when the economy turns around. Commissioner Entsminger asked if the City Council is opposed to Tax Increment Financing (TIF). Mr. Roberts said from what he has seen (in his year with the City), the Council is very reluctant to use TIF. He added that he and Ms. Steinmetz are concerned that if the City is not willing to use TIF, then redevelopment may not happen along the County Road 10 corridor. Commissioner Entsminger said that TIF should never be completely off the table. Chair Gary Meehlhause said that without the availability of TIF, he does not think the City will be able to attract developers. He asked Mr. Roberts to clarify if the City comes out ahead if the City uses TIF. Mr. Roberts said “yes” and explained that when the terms of the TIF agreement end, the increased property value generated from a redevelopment project returns to the tax base of the three taxing jurisdictions (the City, County and School District). He summarized the purpose of TIF by saying that it helps a project get started and then provides a benefit to the area for many years after the terms end. Commissioner Entsminger said that the City may limit the terms of each TIF agreement. Chair Meehlhause said that he understands the Council is in a tough position with the overall budget but the redevelopment of County Road 10 has always been a top priority as far back as he can remember. He added that he does not want to divert from County Road 10 being a top priority.