06-01-1992 WS - Laserfiche WebLink

Home Browse Search

REQUEST FOR COUNCIL CONSIDERATION Agenda Section:OM�11. D� 92-286WS STAFF REPORT Report Number: -1111V AGENDA SESSION DATE JUNE 1, 1992 Report Date: 5/29/92 DISPOSITION Item Description: PRESENTATION BY EVEREST GROUP REGARDING REQUEST FOR TIF FUNDING OF MOUNDS VIEW BUSINESS PARK EAST AND WEST Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) S B �ili Franke and Tim Nelson of the Everest Group will be present at Monday night's meeting to address the Council with a request for Tax Increment financing for the completion of the Mounds View Business Park East and West. Unlike previous projects, the proposal for the new additions to the Business Park is one of a "pay as you go" development. The City would not sell bonds to finance a land write down or public improvements. The developer would upfront the costs and the funding for the land write-down and any public improvements would be reimbursed to the developer from the increment generated by the new tax dollars. While this appears on the surface to be a "no risk" to the City (and in comparison to past projects, it is not) , there are some issues the Council may wish to assess: 1. In granting TIF for land write-down/public improvements, the increment used to reimburse the developer would be lost to the City to use for other TIF projects within the City. 2 . Because the tax increment generated from the new development would be used to reimburse the developer, the distribution of new tax money to the all taxing jurisdictions would be delayed 10-15 years. 3 . Unless something is structured to provide for immediate and on-going "Administrative or Operational" costs, the City will have increases to its operating expenses as there will be new development to provide services to without an increase in tax revenue. 4 . The Business Park will develop on its own and without TIF assistance in time. The economy is still sluggish and it is impossible—to—predict—when it will turn—around—to provide a marketplace capable of spurring development not dependent on financing incentives. Tif assistance will assure that the Business Park will develop far more rapidly than without such assistance. RECOMMENDATION: Saman ha Orduno, City Administrator Everest is looking for the Council's response on their proposal so they can proceed or reassess their direction. or reassess their direction.