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Mounds View EDA January 23, 2006 Regular Meeting Page 3 Commissioner Thomas explained that there are several different types of districts and for 88 redevelopment districts it is eight years. She stated that while there are limited benefits in TIF 89 districts with the tax base, there are other benefits when you encourage development such as the 90 jobs that come into the City. In addition, there are TIF administrative fees that are used for City 91 operations and of a significant benefit to the residents of Mounds View. She noted the term of 92 the TIF district, no matter how permanent it may feel, is still temporary. 93 94 President Marty stated there are different uses for TIF and existing TIF districts that the City has. 95 He stated the City found out in the last few months that due to the requirements on the type of 96 TIF districts that Mounds View has, the City would probably be able to use some of the captured 97 money to put into the City’s streets and infrastructure. He noted that will save the assessment 98 cost to the residents. 99 100 Mr. Glidden asked if the EDA is absolutely sure that can be done to make the funds available for 101 general usage. President Marty clarified that the funds cannot go into the General Fund. 102 103 Mr. Glidden asked if it can go to pay for his street. Commissioner Thomas stated the EDA 104 knows that it can be used for the City’s street projects and infrastructure. 105 106 Vice President Stigney stated it can also be used for trails and street lighting as well and cleaning 107 up contaminated sites. 108 109 Commissioner Gunn noted the City did use some excess TIF to help with the cleanup after the 110 storm and to build the Community Center. 111 112 Mr. Glidden asked about job creation and pointed out that jobs only have a benefit if they are 113 truly new jobs. In terms of revenue or how you define a job, he suggested it has to be a new job 114 and that a transferred job into Mounds View has no financial benefit or tax benefits to Mounds 115 View residents. Mr. Glidden stated his point is that if you are going to undertake economic 116 development on the basis of creating new jobs, then you have to understand the benefit of having 117 new jobs. If you want to undertake economic development to provide new jobs, you have to 118 understand what that means. 119 120 Commissioner Thomas stated that she cannot disagree with Mr. Glidden more. She emphasized 121 that new jobs, even if transferred from somewhere else, are still new jobs. She noted the job pays 122 taxes into the County and that comes into the City. It also provides improvement of the business 123 environment whether transferred jobs or new jobs. Commissioner Thomas explained that when 124 you bring in new development or improve a property tax base, it improves the tax base for all 125 residents and businesses in Mounds View. 126 127 Mr. Glidden asked if anything in his environment changed when the new Cinema was placed in 128 Mounds View. 129