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TIF Report July 10, 2006 Page 2 Mounds View TIF Policy The City’s TIF Policy was reviewed by the EDA on September 6, 2005 and again on March 29, 2006. The present policy was originally adopted by the City in 1997 with a revision approved in June of 2000. The revisions were very minor and involved (1) an amendment to the square footages within the TIF Application Review Worksheet and (2) an amendment to have the Economic Development Commission (EDC) review and make a recommendation regarding any proposed parcel or district decertifications. The City of Saint Anthony Village recently adopted their TIF policy which is included in your packet for review. The structure of the St. Anthony policy is similar to our own, however St. Anthony significantly expands on the policy considerations, goals and objectives and is less detailed in the more technical and administrative aspect of TIF considerations. The applications are similar and both Mounds View and St. Anthony require a non-refundable deposit. (Mounds View requires $5,000, St. Anthony requires $3,000 plus a $10,000 escrow.) Mounds View’s policy on the use of TIF is as follows: It is the responsibility of the Mounds View EDA to use TIF as a tool to accomplish the City’s economic development and redevelopment goals and objectives. The EDA understands and abides by the fundamental principal which makes TIF viable to encourage development and redevelopment which would otherwise not occur. The EDA shall consider TIF in cases that serve to accomplish the City’s development goals and activities as hereby defined in projects eligible for TIF. Mounds View further identifies projects which are eligible for TIF funding as follows: Projects eligible for consideration of TIF assistance include, but are not limited to (1) the attraction, retention, rehabilitation and preservation of commercial, industrial, retail, residential, recreational and public service facilities; (2) new and rehabilitated public infrastructure; (3) community and other public service centers; (4) senior/mature adult and/or other housing development partnerships or other multi-use housings projects and facilities; (5) other public utilities (including telecommunications); (6) business incubator loan and other business programs; and (7) transportation systems. More emphasis will be placed on those items which increase the tax base, eliminate blight, and the meet the City’s economic and redevelopment goals. While staff is not recommending any changes to the policy at this time, the EDA may want to consider amendments that take into consideration present economic issues within the City and the lifespan of the existing TIF districts. The only policy statement regarding the creation of a new district is fairly generic: New tax increment finance districts in the City of Mounds View will be established in accordance with applicable Minnesota State Statutes, the Tax Increment Finance Plan, and the Development District Plan.