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Mounds View EDA October 10, 2000 Special Meeting Page 2 5. EDA BUSINESS A. Consideration of Resolution 00-EDA-135, a Resolution Adopting a Tax Abatement Finance Policy and Application. Economic Development Coordinator Parrish addressed the EDA and explained the resolution adopts the Tax Abatement Finance Policy and Application that was discussed in detail at last Monday’s Council Work Session. MOTION/SECOND: Quick/Marty. To Waive the Reading and Approve Resolution 00-EDA- 135, a Resolution Adopting a Tax Abatement Finance Policy and Application. Commissioner Marty noted this resolution sets a policy for tax abatement finance for the City but said the City would need to work with Ramsey County and the School Board to make it a viable policy. Commissioner Marty then asked Economic Development Coordinator Parrish if his comments on the policy were correct. Economic Development Coordinator Parrish said tax abatement proceeds can be used without a policy in place. The use of abatement proceeds is somewhat limited in that if it is a City only abatement being used for a public infrastructure a City only abatement is no different than levying the normal property taxes on that parcel of property. Therefore, pooling resources with another taxing jurisdiction would make more sense. Vice President Stigney clarified the desirable effect would be to have the City, County and the school district participate in the abatement. At the Work Session where this issue was discussed it was said the school district is not usually in favor of abating taxes but as he understands it, it is the desire to get all three entities to sign off on the policy. The policy right now leaves it up to the discretion of the Council to decide which entities they wish to try to enjoin into tax abatements. Economic Development Coordinator Parrish indicated Vice President Stigney’s statements were correct and said each project would have to be looked at to see what is appropriate for the situation. On some projects it would be desirable to have all three taxing jurisdictions on board and on other projects it is not necessary. It is up to the other taxing jurisdictions to establish their own policies for tax abatement. Commissioner Marty agreed with Vice President Stigney that in order to achieve the maximum benefit from tax abatement all three jurisdictions would need to approve the abatement. He then inquired as to whether the City is limited to a specific dollar amount for abatements. President Coughlin indicated the City is limited by statutory requirements.