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Item No: 7B <br />Meeting Date: January 8, 2007 <br />Type of Business: EDA <br />Administrator Review: _____ <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business <br /> <br />City of Mounds View Staff Report <br />To: Mounds View Economic Development Authority <br />From: Aaron Backman <br />Item Title/Subject: Review the Mounds View Economic Development <br />Authority’s Tax Increment Financing (TIF) Policy <br />and Application and Consider Changes <br /> <br /> <br />Background: <br /> <br />Tax Increment Financing (TIF) is the City of Mounds View’s main economic <br />development tool. Since 1986 TIF has been used by the City to assist <br />businesses to locate or to expand in the community. What is TIF? It is the ability <br />to capture and use all increased local property tax revenues from new <br />development within a defined geographic area. Specific parcels of land are <br />designated as part of a TIF District in order to capture value from the new <br />development. Why use TIF? It encourages certain types of development or <br />redevelopment that would not normally occur without assistance. TIF is intended <br />to create jobs, redevelop blighted areas, remediate polluted sites, and add tax <br />base. It is used to offset the eligible costs agreed to between a developer and <br />the City (i.e. the EDA) under a development agreement. Eligible uses of TIF <br />include land acquisition, demolition and site clearance, public utilities, parking, <br />relocation, and administration. <br /> <br />The Mounds View Economic Development Authority (EDA) adopted its current <br />Tax Increment Financing (TIF) Policy and Application on June 12, 2000 (See <br />attached document). During the past year the EDA requested that the Mounds <br />View Economic Development Commission (EDC) look at the policy and bring it <br />up to date. Over the past few months the EDC has been reviewing and updating <br />the City’s TIF policy. The latest draft, dated December 15, 2006, is attached for <br />your consideration. At the December meeting the EDC unanimously <br />recommended approval by the EDA of the proposed changes to the TIF policy. <br />Changes are shown in red with new language underlined and language to be <br />removed doublestruck. <br /> <br /> <br /> <br />