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Item No. 7B <br /> f _ Staff Report No. EDA-97-73C <br /> Meeting Date 5-12-97 <br /> 111/ Type of Business EDAB <br /> WK: Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;EDAB:EDA Business <br /> Mounds View Economic Development Authority <br /> Staff Report <br /> To: Mounds View Economic Development Authority <br /> From: Cathy Bennett, Director of Economic Development <br /> Item Title/Subject: Consideration of Approving a Tax Increment Policy <br /> Date of Report: May 8, 1997 <br /> Attached is a Tax Increment Policy that was developed by the Economic Development <br /> Commission to guide staff and interested applicants in the use and evaluation of the City's tax <br /> increment funds (TIF). <br /> The policy explains Mounds View's legal powers as an Economic Development Authority <br /> (EDA) under State Statute for use of TIF and states the general concepts relating to the use of <br /> TIF to encourage development and redevelopment that would not otherwise occur. The policy <br /> addresses eligible uses and costs associated with TIF and explains the general procedure to <br /> determine the amount of assistance and types of assistance funded through TIF. <br /> • <br /> The policy requires that an applicant complete an application form and sign a deposit agreement <br /> prior to EDA staff or consultants evaluating the project's eligibility or negotiating a TIF <br /> Agreement. <br /> The policy will provide developers with a general understanding of how TIF works and will give <br /> staff a tool to gather information when evaluating a project. In addition, the EDA will be able to <br /> offset consulting fees generated in the evaluation of assistance with the signature of the deposit <br /> agreement. If the evaluation results in a development agreement, the deposit will be reimbursed <br /> to the applicant and the EDA can recoup the consulting fees through increment generated from <br /> the project or existing increment set aside for administration. If the project fails, the EDA will <br /> keep the deposit to cover the consulting fees. <br /> Recommendation: <br /> Staff is recommending the approval of the attached Tax Increment Policy to be effective <br /> immediately and applied to all pending tax increment projects. <br /> Cathy Benn-I, hir. of Economic Development <br />