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Mounds View EDA January 23, 2006 Regular Meeting Page 5 Hills or Shoreview, they are new jobs to Mounds View. But that is not what the economic 172 development statutes, TIF, or other encouragement for business intended. They describe those 173 employments as increase in employment. He suggested that in a common sense application, it is 174 an increase in jobs and it is not increasing jobs in Ramsey County if the job is being transferred 175 from Arden Hills or Shoreview. Mr. McCarty stated the answers should be more clear for those 176 who are not familiar with TIF details. 177 178 Commissioner Thomas stated before things get too heated, she wanted to clarify some things. 179 She stated that the EDA has already been down this road and yes, there will be some transfer jobs 180 from Shoreview and Arden Hills but there will also be some new jobs beyond what they already 181 have employees for. She asked Mr. McCarty what are the worst streets in Mounds View, noting 182 that 75% of the streets in Mounds View are significantly in need of restructuring and every dollar 183 that can be found to put on streets is applicable. Commissioner Thomas noted that for every 184 dollar that can be used from TIF it will keep that dollar off the assessment rolls. She stated the 185 City has been trying to find alternatives for ten years and to now find out there are expanded uses 186 for the old TIF district pools should show residents the creativity of the City’s advisors to find 187 new uses for TIF because the City is getting desperate. Commissioner Thomas stated that 188 residents should find some joy in the City’s ability to find new uses for TIF. 189 190 City Administrator Ulrich commented that traditionally TIF, as we have thought of it before, was 191 not to be used for general fund purposes or street reconstruction in general. However, Mounds 192 View has older districts with less restriction and because of that they can be used within the 193 development district, which is defined as the entire City. Those funds can be used for 194 infrastructure improvements throughout the entire City. He explained that opinion came from 195 Ehlers & Associates when the City looked at the street projects in terms of maintenance and long 196 term reconstruction. 197 198 Stacie Kvilvang, Ehlers & Associates, explained that typically in TIF districts when creating new 199 ones for economic redevelopment, renovation, renewal, housing, or redevelopment, you can use 200 funds for road and utility improvements tied to that development. However, since several 201 Mounds View TIF districts are pre-1990, there are not the restrictions on those districts. There is 202 a different set of statutes governing those pre-1990 districts. Based on that, bond counsel 203 concurred that the City can use pre-1990 TIF district funds for street reconstruction. 204 205 Vice President Stigney asked if those funds can be used throughout the City. Ms. Kvilvang 206 stated yes, that is correct. 207 208 Mr. McCarty stated he understands that as well and was there when some of the districts were 209 formed, but did not vote for them. He asked why, if there is so much money flowing around 210 those districts, the City’s streets are in the condition they are in. He also asked how many TIF 211 dollars are available that can be used City-wide on streets. 212 213