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M:\MasterFiles\1999 thru 2010\2000\EDA\EDA Packets\03-13-00\Item No. 05A,05B,05C--Aaron Parrish.doc Item No. 5A - 5C Staff Report No. Meeting Date: 3-13-00 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: EDA President and Commissioners From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Economic Development Commission Direction Date of Report: March 13, 2000 Background: At the February 24th meeting of the Economic Development Commission, Commission Members expressed an interest in conducting business retention visits and addressing potential options for 2901 Highway 10. Business Retention Visits Last month the EDC developed a work plan (available on the following page) to guide their activities in the proceeding year. Recognizing the importance of business retention in Mounds View, one particular component of the work plan calls for the Commission to “Participate with staff in retention calls to local businesses.” Accordingly, the Commission respectfully requests direction/authorization from the EDA to develop a Business Retention Visit Program. 2901 Highway 10 Informally, the EDC inquired about potential options available for the redevelopment of 2901 Highway 10, or the former Kunz Oil property. At this point, there appears to be three preliminary options including purchase of the site, active code enforcement, and demolition assistance. Direction is requested to further investigate the aforementioned options for the site. Tax Abatement Policy In 1997, local units of government were given the authority to grant property tax abatements. In essence, tax abatement allows local units of government (city, county, school district) discretion in abating their portion of property taxes. In comparison to TIF, abatement is project specific whereas TIF is district dependent. Unlike TIF, there are no restrictions on how or where abatement proceeds may be spent. The above information is offered to provide context. There are many additional facets of abatement that have yet to be enumerated. However, direction is sought for the EDC to examine the potential use of tax abatement in Mounds View, and if necessary to develop a tax abatement policy. Recommendation: Provide direction to the EDC regarding business retention visits, 2901 Highway 10, and tax abatement. ____________________________ Aaron Parrish Economic Development Coordinator