02-13-2006 - Laserfiche WebLink

Home Browse Search

Mounds View EDA January 23, 2006 Regular Meeting Page 2 having to do with enhancing the tax base through TIF. He asked whether the purpose of the 46 EDA is to finance development using TIF. 47 48 President Marty stated not necessarily but TIF is controlled by the EDA. 49 50 Mr. Glidden asked if the EDA is the overseer of TIF utilization. President Marty answered in the 51 affirmative. 52 53 Mr. Glidden asked whether TIF is a tool for economic development in the City. President Marty 54 explained that as the EDA sees fit, it can be. 55 56 Mr. Glidden stated he is puzzled a bit at how that benefits the citizens and taxpayers of the City. 57 He stated the EDA is an organization established to carry out economic development in Mounds 58 View but he didn’t hear one word in that description that related to the benefit of the taxpayers of 59 Mounds View. He asked what is the purpose of economic development, and what is the gain for 60 doing it. 61 62 President Marty explained that by encouraging and assisting business with some TIF districts, the 63 City has encouraged them to move into Mounds View and develop land that was vacant. So, 64 once that property has been decertified it has a much greater tax value than it did previously to 65 the development. 66 67 Mr. Glidden suggested that the tax value only is of benefit if the taxes are available for general 68 use. If the taxes are tied to the development paying it, then there is no benefit to the taxpayer, 69 only benefit to the corporation or organization being economically developed. 70 71 President Marty explained that when a district is in effect, there are payments and obligations to 72 developers and businesses. But, in 2004 the City was able to decertify a number of parcels that 73 either did not use TIF but happened to be within the TIF district or their TIF obligation had 74 already been satisfied. By decertifying, those businesses and parcels went back on the tax rolls. 75 76 Mr. Glidden stated he understands this and that it is the legal requirement and definition, which 77 is why the district is limited to eight years. At that point, the taxes then go into the general fund 78 and are available for general use. 79 80 President Marty explained that when the districts were first set up the law and the requirements 81 were different. 82 83 Mr. Glidden suggested that the definitions for the typical term of TIF or economic redevelopment 84 have not been recently changed in the State statute. He stated that the maximum term for TIF is 85 eight years. 86 87