07-12-1999 CC - Laserfiche WebLink

Home Browse Search

UNAPPROVED Council Member Marty stated that he had also attended a tax seminar, where discussion took place in regard to Tax Increment Financing (TIF). He stated that an expert in the area had advised that, although Tax Increment Funds were necessary as required, they should be paid off within seven to ten years. He stated that loans made for fifteen or twenty-year periods were, in his opinion, invalid. He stated that a Council or staff could make the loans, which may not be paid at the time they are due and, therefore, leave someone other than the party who originally negotiated the term of the loan to deal with the remaining debt. He stated in consideration of the rate that the State has been decreasing industrial and commercial taxes, TIF loans should require a set amount as a guarantee to insure they will be paid back. He noted that without this guarantee, the only way to recoup the possible decrease in taxes would be through a franchise fee. Marty added that the City of Mounds View had discussed eliminating franchise fees and in light of this information, it would be of merit to further investigate the franchise fee issue, in terms of the existing TIF loans. Council Member Marty stated that he had gained information from these and several other seminars, and found them to be, for the most part, very interesting. He stated that he would be obtaining more information in the future from the numerous contacts he had made at the Conference. Mayor Coughlin reported that he, Council Members Marty and Stigney, City Attorney Long (in his capacity as League Board Member), Assistant to the City Administrator Schmidt, and City Administrator Whiting had all attended the League of Minnesota Cities Conference in Rochester. He stated that Economic Development Coordinator Kevin Carroll had also attended the conference in the capacity as Council Member of the City of Rosemount. Mayor Coughlin stated that he had attended a budget seminar where discussion took place in regard to communicating the needs of the city to the community in a clear and sensible manner. Mayor Coughlin stated that the primary focus of this type of meeting was to provide the Council with the opportunity to communicate with other people throughout the State who may have encountered similar situations, in order to share information. He stated that it was beneficial to pool their resources, and added that he had also made numerous contacts at the Conference. Mayor Coughlin stated that one of the items before the Council was a public hearing regarding the Streets Committee Report, and one of the recommendations in the Report pertained to what percentage should be assessed during road reconstruction. He stated that one of his goals at the Conference had been to seek out other Mayors and Council Members to learn about their policies in this area. He stated that some creative solutions had come forward, he considered the Conference to be very beneficial, and was attempting to compile the information he had obtained, and share it with the members of the Council. Mayor Coughlin congratulated City Administrator Whiting for securing his position on the League of Minnesota Cities Board. He stated that this was a one year position, during which City Administrator Whiting would represent the City of Mounds View. He stated that this was an honor for City Administrator Whiting and also very beneficial for the City of Mounds View in having gained representation with this body. Mayor Coughlin stated that he had attended a community picnic at the Mounds View manufactured home park where both he and his son had enjoyed a great time. He expressed his thanks to the community of the Manufactured Home Park. He stated that Dare Program Officer Tim Brennen was also in attendance, and noted that he was quite impressed with the impact of his presence upon the children. He stated that 3 C:\ADMIN\MINUTES\CC\6-28-99.CC