08-22-2005 - Laserfiche WebLink

Home Browse Search

Mounds View EDA August 22, 2005 Regular Meeting Page 8 Commissioner Thomas stated some of the language is standard “boiler plate” and not specific to just this District. President Marty referenced Page 2-3, Subsection 2-6, Classification of the District, and read the following definition of TIF: “Economic development district’ means a type of tax increment financing district which consists of any project, or portions of a project, which the authority finds to be in the public interest” and then lists three different reasons. He stated all three are to the benefit of the State and does not reference local jurisdiction. He stated that the creation of TIF Districts is of benefit to the State. Commissioner Thomas noted President Marty is reading from the State Statute, which is why it is referencing benefits to the State. President Marty read Subsection 2-7, Duration of the District, indicating “Pursuant to the special legislation, subd. 2(b), the duration of the District will be 25 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be in 2007. He pointed out that the clock won’t “start ticking” for about two and a half years. Commissioner Flaherty noted that section also indicates: “The EDA or City reserves the right to decertify the District prior to the legally required date.” He explained the EDA can decertify the district prior to the legally required date so it wouldn’t have to go the full 27 years. President Marty referenced Page 2-4, Subsection 2-8, that indicates: “…the Original Net Tax Capacity as certified for the District will be based on the market values placed on the property by the assessor at the time the property is classified as taxable.” He stated it is up to the Ramsey County Assessor but the City’s appraisal came in at $10 million. President Marty stated he does not understand the chart at the bottom on Page 2-4 and questioned the Original Local Tax Rate of 125.768%. Mr. Inman referenced the chart on Page 2-9 and explained the combined tax rates of all taxing jurisdictions. President Marty referenced the first paragraph on Page 2-7, that indicates: “The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements.” He asked if the costs could be modified upwards. Mr. Inman referred to Page 2-6 and explained that the State Auditor will allow the EDA, by resolution, to move money from one area to another. However, that at the end of the day it