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<br /> 3 <br /> <br /> <br />I. POLICY PURPOSE <br /> <br />The Mounds View Economic Development Authority, hereafter referred to as the <br />EDA, promotes the development and enhancement of the City of Mounds View’s tax <br />base. The purpose of this policy is to establish the EDA’s position relating to the <br />use of tax rebate financing, otherwise referred to as tax abatement. This policy <br />shall be used as a guide in the processing and review of applications requesting tax <br />rebate assistance. The fundamental purpose of tax rebate financing in Mounds <br />View is to encourage desirable development or redevelopment that would not <br />otherwise occur but for the assistance provided. It is desirable that Tax Increment <br />Financing (TIF) be utilized in lieu of TRF whenever possible and if it can be shown <br />to be beneficial to the City to do so. <br /> <br />The Mounds View EDA is granted the power to utilize tax rebate financing by the <br />Minnesota Tax Abatement Act, as amended. The EDA reserves the right to approve <br />or reject projects on a case by case basis, taking into consideration established <br />policies, project criteria, and demand on city services in relation to the potential <br />benefits from the project. Meeting policy criteria does not guarantee the award of a <br />tax rebate to the project. Approval or denial of one project is not intended to set <br />precedent for approval or denial of another project. <br /> <br /> <br />II. DIFFERENCE BETWEEN TAX REBATE & TIF <br /> <br />The primary difference between Tax Rebate Financing (TRF) and Tax Increment <br />Financing (TIF) is the way in which the dollars are awarded to the project. When <br />TIF is awarded to a project by the EDA, the other political subdivisions (the school <br />district and the county) are required to contribute their portion of the increased <br />taxes to the project. Conversely, when tax rebate financing is requested, each <br />political subdivision has the option of granting its portion of the current and/or <br />increased taxes to the project. Depending on the position of the respective taxing <br />jurisdictions, the dollars generated by TRF are generally less than the dollars <br />generated with TIF. <br /> <br /> <br />III. OBJECTIVES OF TAX REBATE FINANCING <br /> <br />As a matter of adopted policy, the EDA will consider using tax rebate financing to <br />assist private development projects to achieve one or more of the following <br />objectives: <br /> <br /> <br /> <br /> <br /> <br />M.V. Tax Rebate Policy 9.22.03 Final