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March 10, 2008 December 12, 2011 Mounds View Business Toolbox Internal Document Page 10 of 10 7) Tax Increment Financing (TIF) The City of Mounds View has adopted the attached policy (see Appendix D) pertaining to Tax Increment Financing (TIF). TIF is considered the premier tool for economic development in Minnesota. Since 1986 the biggest single development program in the City of Mounds View’s Toolbox has been the use of Tax Increment Financing (TIF). TIF, in brief, is the ability to capture and use all increased local property tax revenues from new development within a defined geographic area. TIF payments to developers can be used for eligible uses, such as land acquisition, demolition, utilities, parking, relocation, administration, etc. There are different types of TIF districts, including redevelopment, economic development, housing, and soils condition districts. Mounds View currently has four tax increment financing districts—three redevelopment districts and one economic development district. Purpose: It is the policy of the City of Mounds View to consider the judicious use of Tax Increment Financing (TIF) for those projects which demonstrate a public benefit by constructing public improvements in support of developments that will: create new jobs, retain existing employment, eliminate blight, strengthen the economic base of the City, increase property values and tax revenues, create economic stability, and/or expansion of business and housing options in the City. Who can apply? Any developer or business owner with a facility or property located in Mounds View, or any developer or business owner intending to construct a facility in Mounds View. How does the program work? The developer or business owner completes a Tax Increment Financing (TIF) application and submits the application and the required $5,000 application fee to the City’s Community Development Department. Economic Development staff reviews and analyzes the information and presents it to the City’s Economic Development Authority. The EDA gives preference to the use of “pay as you go” assistance to finance development or redevelopment projects.