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Item No: 7A Meeting Date: July 10, 2006 Type of Business: EDA Business Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Jim Ericson, Community Development Director Item Title/Subject: Review the Mounds View Tax Increment Financing (TIF) Policy Background: On March 29, 2006, the Economic Development Authority (EDA) reviewed the existing economic development policies and the present status of the TIF revenues. The EDA discussed potential TIF-supported expenditures recognizing that the projects identified for potential TIF funding far exceeded the total projected revenues to be collected through the remaining life of the districts. The Council requested additional financial analysis regarding the scenarios discussed and how each of those scenarios would impact a median valued home from a local tax perspective. This information, along with updated increment spreadsheets, was presented to the EDA on May 22, 2006. On a split vote, the EDA chose to make no changes to the TIF revenue stream. It was asked that staff bring back to the EDA an update from the Planning Commission who had discussed funding priorities at their meeting on April 19, the City’s TIF policy and the city of Saint Anthony Village’s TIF Policy which they recently adopted. This information is presented herein for the EDA’s consideration. Discussion: The Mounds View Planning Commission discussed the options relating to the three tax increment financing (TIF) districts and whether there was support for a reduction in the increment collected. The Commission spent most of its time reviewing the funding priorities rather than taking a position on the scenarios that would scale back the levels of increment collected by the City. The Commission felt that it was not in a sufficient position to make a recommendation regarding the scenarios until they had information as to the impacts of each scenario on a median-valued property. The Commission explained that if a given scenario reduced increment by $2,000,000 yet only reduced the annual tax bill to a home-owner by $10, it would not seem prudent to reduce the increment given the identified funding needs of the City. (The information the Commission requested was available and presented to the EDA on May 22, 2006.) The Planning Commission will review the updated financial reports and scenario analyses at their meeting on July 5, 2006. As far as funding priorities, the Commission as a whole felt that the City should utilize the increment collected to improve County Road 10 and to promote meaningful commercial redevelopment within the corridor, highlighting specific area such as Moundsview Square, Silverview Plaza and the PAC building. The Commissioner agreed that the City’s streets and infrastructure would also be a worthy funding priority. (The April 19 Planning Commission minutes are attached for your reference.)