06-27-2005 - Laserfiche WebLink

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Mounds View EDA June 27, 2005 Regular Meeting Page 15 approximately $300 million adding that they did not mention the use of TIF, which would mean that the funds would go directly to the City of New Brighton’s tax base. He stated that he has had issues throughout the discussion process with the timeframe of the TIF District. He stated that it was originally proposed as a redevelopment TIF district, which could have a lifespan of 25-years noting that it was changed and modified to what it should be, which is an Economic Development District. He explained that by TIF Statute and State law an Economic Development District is capped at 8-years noting that there was special legislation to extend this to 25-years for Medtronic, and for Medtronic alone. He noted that the first year wouldn’t count so it would actually end up being a 26-year TIF district. He acknowledged that this could pay-off sooner than it is proposed but it is still a quarter of a century and many would not realize the benefits from a 25-year TIF district. He stated that it was pointed out that in actuality the savings would be a couple bucks a year on their taxes through the school districts. He referenced the traffic issues noting that they would not have the resources to address these issues in addition to the road repairs. He stated that he does not see this as a big cash cow noting that he discussed this with Finance Director Hansen and asked for his input on the issues. He explained that the Finance Director explained that in 25-years the city would be in great shape but in the meantime, as Joe pointed out, and over the last number of years the city has had to do double-digit tax increases just to meet basic city expenses. He stated that at a break of $41,000 to $43,000 a year coming directly to the city would increase a bit every year but the billboard contract was negotiated for five years noting that no one on the Council was actually in favor of billboards. He stated that they worked out a sunset clause where the billboards would come down in twenty years but with this proposal the billboards would not come down for 30-years or longer. He explained that the timeframe doesn’t start until the billboards are moved and in place. He stated that presently all of the billboards are located north of Highway 10 and Medtronic does not want the billboards located on their property. He agreed adding that they cannot fit all of the billboards in this area and some of the billboards would have to be brought into town and remain for the next 30-years. He clarified that he has never been in favor of billboards but agreed to the contract as a means to an end to pay off the golf course without incurring an increase in property taxes to pay off the golf course. He stated that he would like to move to table this discussion to ask Springsted and Associates to review this proposal and give the City an independent third- party viewpoint. Vice President Stigney called a point of order stating that a motion to table is out of order in accordance with the Roberts Rules. President Marty moved to postpone. Vice President Stigney referred to page 201 of Roberts Rules of Order, newly revised, it states that tabling a motion can only be used to set something aside temporarily for a matter that is of more urgency that needs to be dealt with at that moment. City Attorney Riggs clarified that it should be a motion to postpone.