Agenda Packets - 1990/11/19 - Laserfiche WebLink

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.. _ ... III TO: MAYOR & CITY COUNCIL -N.. . . FROM: CLERK-ADMINISTRATOR PAUL :'11 DATE: JANUARY 12, 1990 SUBJECT: USE OF TAX INCREMENT(TIF) REVENUES FOR REDEVELOPMENT At a recent meeting with Walt Hartman , the City' s Tax Increment consultant, I asked him what options we had for using revenues from the City' s TIF Districts other than funding the development projects. This question was based upon the thought that we might receive excess increments from existing projects , that the existing projects' debt will retire at least 5 years before the district ends, or that the City might not offer TIF assistance for Phase III of Mounds View Business Park . Since the Council has indicated an interest in undertaking some redevelopment efforts, I wanted to see if we could identify a funding source other than property taxes. ng the discussion we reviewed the three activities in which you have i icated an interest. The activities and what we can do with TIF money to fund them are as follows, 1 . COMMUNITY CENTER - The Tax Increment law allows for the purchase and remodeling of an existing building or construction of a new building for a commuity center as long as it does not contain any offices or facilities in which the City' s normal business is conducted . In addition , the building to be acquired or the site on which a Commuity Center is to be built must be part of a TIF district in order to use TIF funds. 2. SCATTERED SITE SINGLE-FAMILY CLEARANCE - If the City were to be .esigna e- one arge na. i D . - • - ■ ma - - - Budgets were amended to reflect the fact that this was an eligible activity, the City could use TIF funds to acquire deteriorated single-family homes. We could then use TIF funds to demolish or remodel the building and sell the lot or remodeled home on the open market and return the sales revenue to the fund on a revolving basis. Clearly , we would want to limit this type of activity to the worst cases where no other feasible alternatives exist. 3. HIGHWAY 10 CORRIDOR REDEVELOPMENT - If the City were to include portions of the Highway 10 Corridor west of I in a TIF District • and amend the Plan and Budget for the District, TIF funds could be used to acquire property, clear structures, combine parcels into lager sites, and construct public improvements for the purpose of preparing the area for redevelopment. There is a risk with this speculative type of activity, but as we have often discussed in the past, it is unlikely that any psitive redevelopment will occur in this area without the participation of the City in packaging larger sites.