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Mounds View EDA January 27, 2003 <br />Regular Meeting Page 2 <br /> <br />Commissioner Marty arrived at 6:36 p.m. <br /> <br />Economic Development Coordinator Backman addressed the Council and provided information <br />on the use of Tax Increment Financing by the City of Mounds View including requirements and <br />restrictions for using TIF funds. <br /> <br />Commissioner Marty noted the Staff report indicated restrictions include that 90% of increments <br />must be used to correct redevelopment issues and then asked if this was a new rule or whether <br />some districts would need to be decertified. <br /> <br />Economic Development Coordinator Backman explained that the rule of 90% has been around <br />since 1989 but does not predate the City’s TIF districts as they were created in 1986 and 1988 <br />which allows the City the flexibility. He then explained that it would be possible to decertify <br />specific parcels if Council deemed them able to go back onto the tax rolls and said a good <br />example would be the Highway 10 Business Center as the City assisted the builder with the <br />demolition by using TIF dollars but has not promised them multiyear TIF. <br /> <br />Vice President Stigney indicated he would like the new Council to discuss whether it is in the <br />City’s best interest to close out parcels and bring them back onto the tax rolls or leave them in <br />TIF for the life of the District. <br /> <br />President Linke asked how much longer the TIF Districts would go. <br /> <br />Economic Development Coordinator Backman indicated that two Districts would close in 2014 <br />and one District would close in 2012. <br /> <br />Vice President Stigney said he questions whether parcels such as the Mounds View Animal <br />Hospital should be left in the TIF District or be put back on the tax rolls now that the project is <br />complete. <br /> <br />Economic Development Coordinator Backman indicated that increment from the Districts, <br />because of unlimited pooling, could be used for improvements in other areas to benefit the City <br />and businesses within the City. <br /> <br />President Linke indicated he would like further information before being asked to make a <br />determination as to whether the parcels should stay in the District for the life of the District or be <br />placed back on the tax rolls. <br /> <br />Vice President Stigney indicated he would like the parcels to go back to the taxpayers. He then <br />said he realizes the City catches the money for TIF but the money does not go into the City’s <br />general fund. He further suggested that Council discuss the matter at a work session in the <br />future.