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<br />Item #: 5A <br />Meeting Date: March 9, 2012 <br />Type of Business: EDC <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br /> <br /> <br /> <br />To: Economic Development Commission <br />From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Tax Increment Financing (TIF) Presentation <br /> by Finance Director Mark Beer <br /> <br />Introduction <br />On March 9th, Mounds View Finance Director Mark Beer will provide the EDC with a “TIF <br />101” presentation. Below are the definitions of TIF, a TIF District and what TIF can be used <br />for. <br /> <br />What is TIF? TIF is the ability to capture and use most of the increased local <br />property tax revenues from new development with a defined geographic area for a <br />defined period of time without approval of the other taxing jurisdictions. <br /> <br />What is a TIF District? A TIF District is a defined collection of parcels whose <br />increased value will be captured and used. A TIF District is the location where the <br />“increment” is collected. <br /> <br />What can TIF be used for? TIF must be used towards costs associated with new <br />development on items such as the following: <br /> <br /> Land Acquisition <br /> Demolition and Relocation <br /> Site Improvements <br /> Utilities, Streets and Sidewalks <br /> Environmental Cleanup <br /> Parking <br /> Buildings (but only for housing or new Economic Development TIF Districts) <br /> <br />Background <br />As shown on the attached map, the City of Mounds View has four TIF Districts (Districts 1, <br />2, 3 and 5). Districts 1, 2 and 3 will be expiring (or decertifying) in the next few years. <br />Since there are unobligated TIF balances in each of the expiring districts, the EDA may use <br />the unobligated TIF funds for Economic Development purposes. Attached is a spreadsheet <br />showing Mounds View’s unobligated TIF balances. Mark Beer will explain the spreadsheet <br />during the EDC meeting. <br /> <br />Respectfully Submitted, <br /> <br />Heidi Steinmetz, Economic Development Specialist