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Mounds View EDA August 25, 2003 <br />Regular Meeting Page 3 <br /> <br />B. Set a Public Hearing for 6:35 p.m. Monday, September 22, 2003 to Receive <br />Public Input and Pass Upon the Revised Tax Abatement Finance Policy & <br />Application. <br /> <br />David Jahnke of 8428 Eastwood Road commented that he feels TIF was abused by the City and <br />he has never gotten a report on how that was worked out with the state auditor. <br /> <br />Commissioner Quick indicated that he took exception to the use of the word abuse as the City <br />did not abuse the TIF system it was simply a matter of missing documentation. He then said that <br />a staff member forgot to incorporate some information on tax increment and the state said the <br />school district was not notified but the superintendent was at the meeting. <br /> <br />Commissioner Stigney commented that the other part was that the City did not specify what <br />parcels. <br /> <br />Mr. Jahnke indicated that he feels when the district has served its purpose it should be closed to <br />get the money back on the general tax role. He then gave an example of a City that sacrificed tax <br />money to create one job at $4.50 per hour. <br /> <br />Commissioner Quick asked what happens to the taxes that are being paid on the property when a <br />property is placed in a TIF district. <br /> <br />Finance Director Hansen indicated that if a property is put into a TIF district and is paying <br />$10,000 in taxes before development that amount is split according to the formulas some to the <br />City, some to the County, and some to the school district then, after development if another <br />$15,000 is generated in new taxes the new taxes are captured by the TIF district. <br /> <br />Commissioner Quick asked what would happen to the $15,000. <br /> <br />Finance Director Hansen indicated that the $15,000 comes to the City. <br /> <br />Mayor Linke indicated there is also 10% off the top for administration. <br /> <br />Commissioner Quick asked if a TIF district is allowed to continue forever. <br /> <br />Finance Director Hansen indicated there are limits in state law and the maximum is 26 years but <br />something less can be set up. <br /> <br />Finance Director Hansen explained that case with the state auditor was settled about three <br />months ago and it was referred to the attorney general for mediation after other venues and the <br />basis of the settlement was the City admitted no wrong doing and agreed to create no new TIF <br />district for a few months and promised to comply with all TIF laws in the future. He then said