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City of Mounds View Staff Report <br />June 14, 2000 <br />Page 4 <br />2000 Abatement Calculation: <br />City of Mounds View/Ramsey County/ISD #621 <br />Total Tax Capacity ($1,000,000 Commercial Project): <br />$40,481 <br />City Tax Rate: <br />25.551% <br />County Tax Rate <br />44.839% <br />ISD #621 Tax Rate <br />46.421% <br />Percent Abated: <br />95% <br />2000 Abatement Payment: <br />$44,921.95 <br />5 Year Revenue Projection: <br />$224,609.75 <br />As one can see, intergovernmental cooperation will be a necessary component for the effective use of <br />tax abatement. At this point, a preliminary letter has been sent to the school district and county <br />requesting their perspective on the use of abatement. However, we have not received a response at <br />this point. Beyond the general parameters outlined in the legislation, the attached "Tax Abatement <br />Finance Policy & Application" further refines the potential use of abatement in Mounds View. <br />1. Bubul, Steve, Mike LaFave, Mark Ruff, and Joel Sutter. "'How to Succeed at Business Without <br />Really Trying' aka Abatement.„ TIF on Stage: Comedy Tragedy Mystery' Tax Increment Financing <br />2000. Ehlers and Associates, 2000. <br />Necessary Actions: <br />Evaluate and make recommendations regarding the attached Tax Abatement Finance Policy <br />Aaron Parrish, Economic Development Coordinator <br />(763) 717-4029 <br />N:\DATA\GROUPS\ECONDEV\EDC\Staff Reports\StaffDO\06-6A.doc <br />