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<br />Item #: 07A <br />Meeting Date: February 8, 2016 <br />Type of Business: EDA <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Economic Development Authority <br />From: Brian Beeman, Business Development Coordinator <br />Item Title/Subject: Consider Resolution 16-EDA-292 Approving the Revised <br />Public Financing Policy & Application <br /> <br />Introduction: <br /> <br />As staff was reviewing fee schedules and policies for 2016 in relation to Tax Increment <br />Financing (TIF) and Tax Abatements, it became apparent that the TIF and Tax <br />Abatement policies were outdated and in need of attention. As a result, staff and the <br />City’s legal & financial consultants have reviewed the polices and recommend a <br />combined, updated TIF & Tax Abatement Policy, which is proposed to be called “The <br />City of Mounds View Economic Development Authority Public Financing Policy & <br />Application.” The EDC reviewed the proposed policy on January 15, 2016 and the City <br />Council reviewed the proposed policy at its February 1, 2016, work session. <br />Resolution 16-EDA-292 is attached for consideration by the Authority. <br /> <br />Discussion: <br /> <br />The City of Mounds View’s Tax Abatement Policy was last updated September 22, <br />2003. The City’s TIF Policy was last updated June 12, 2000. As staff was reviewing the <br />policies, it became apparent that some of the language in the policies was in need of <br />updating due to statutory changes and to clarify language that often causes confusion in <br />agreements. <br /> <br />Ehler’s, the City’s financial consultant, and Kennedy & Graven, the City’s legal <br />consultant, have both reviewed and recommended that the TIF & Abatement policies be <br />combined. The updated version seeks to clarify and bring the policy up-to-date with <br />current statutes and also incorporated language from other cities’ policies. The <br />proposed policy is now entitled, “The City of Mounds View EDA Public Financing Policy <br />& Application”. The combined policy proposes the following changes: <br /> <br /> Combines the purposes, objectives, and policies from the previous abatement <br />and TIF policies. These were very similar, so all of those policy ideas are <br />represented in the combined policy. <br /> <br /> The TIF policy had square footage, tax and valuation minimums listed. We <br />removed this concept because any project that meets all of the policy criteria will