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ri d <br /> .4 M <br /> ilia• <br /> AUI -,;11 . y _, . <br /> b 1y <br /> W <br /> as aciati©r� of ., 4: s <br /> metropolitan ',. .- � f'w� <br /> Qc `.:s : ,�_.._,..,siia <br /> municipalities :',,6v-, <br /> February 6, 1990 <br /> TO: Member Cities <br /> FROM: Vern Peterson, Executive Director <br /> Roger Peterson, Director of Legislative Affairs <br /> RE: LEGISLATIVE PREVIEW/SESSION CONVENES FEBRUARY 12TH. <br /> 1. TAX INCREMENT FINANCING (TIF) UNDER ATTACK: <br /> Contrary to earlier expectations, it appears that strong <br /> efforts will be made to further restrict the use of TIF and <br /> this could be one of the major 'hot' legislative items this <br /> session. The AMM policy position is that TIF ought not to <br /> be further restricted this session for a variety of good <br /> reasons including the following: <br /> • A. It is working well and it is about the only economic <br /> development tool still available to cities. <br /> B. TIF is a tool to implement policy. The Legislature <br /> should examine the state economic development policy and <br /> then determine how TIF should be used to implement that <br /> policy. <br /> C. Many restrictive TIF amendments (see chart attached) <br /> were adopted in 1988 and 1989 and there is some evidence <br /> that the restrictions are starting to resolve the <br /> concerns raised by the Legislature. A Senate Research <br /> _ .. . - . _ - - - - <br /> growth of tax increment value has slowed significantly. <br /> D. As a result of studies underway, more information will <br /> be available for the 1991 session. <br /> For example: <br /> -More comprehensive TIF data will be available from the <br /> Department of Revenue beginning in 1991. <br /> -The Legislative auditor will be conducting <br /> comprehensive review of local economic development <br /> powers, policies, and tools in preparation for the 1991 <br /> session. <br /> -The Legislative Commission on Fiscal Policy has TIF as <br /> part of its work program. The members should be <br /> 411 encouraged to work on TIF in preparation for the 1991 <br /> session. <br /> -1- <br /> 33 university avenue east, st. paul, minnesota 55101 (612) 227-4008 <br />