10-24-2005 - Laserfiche WebLink

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Mounds View EDA August 22, 2005 Regular Meeting Page 8 Commissioner Thomas stated some of the language is standard “boiler plate” and not specific to 293 just this District. 294 295 President Marty referenced Page 2-3, Subsection 2-6, Classification of the District, and read the 296 following definition of TIF: “Economic development district’ means a type of tax increment 297 financing district which consists of any project, or portions of a project, which the authority finds 298 to be in the public interest” and then lists three different reasons. He stated all three are to the 299 benefit of the State and does not reference local jurisdiction. He stated that the creation of TIF 300 Districts is of benefit to the State. 301 302 Commissioner Thomas noted President Marty is reading from the State Statute, which is why it 303 is referencing benefits to the State. 304 305 President Marty read Subsection 2-7, Duration of the District, indicating “Pursuant to the special 306 legislation, subd. 2(b), the duration of the District will be 25 years after receipt of the first 307 increment by the EDA or City. The date of receipt by the City of the first tax increment is 308 expected to be in 2007. He pointed out that the clock won’t “start ticking” for about two and a 309 half years. 310 311 Commissioner Flaherty noted that section also indicates: “The EDA or City reserves the right to 312 decertify the District prior to the legally required date.” He explained the EDA can decertify the 313 district prior to the legally required date so it wouldn’t have to go the full 27 years. 314 315 President Marty referenced Page 2-4, Subsection 2-8, that indicates: “…the Original Net Tax 316 Capacity as certified for the District will be based on the market values placed on the property by 317 the assessor at the time the property is classified as taxable.” He stated it is up to the Ramsey 318 County Assessor but the City’s appraisal came in at $10 million. 319 320 President Marty stated he does not understand the chart at the bottom on Page 2-4 and questioned 321 the Original Local Tax Rate of 125.768%. 322 323 Mr. Inman referenced the chart on Page 2-9 and explained the combined tax rates of all taxing 324 jurisdictions. 325 326 President Marty referenced the first paragraph on Page 2-7, that indicates: “The cost of all 327 activities to be considered for tax increment financing will not exceed, without formal 328 modification, the budget above pursuant to the applicable statutory requirements.” He asked if 329 the costs could be modified upwards. 330 331 Mr. Inman referred to Page 2-6 and explained that the State Auditor will allow the EDA, by 332 resolution, to move money from one area to another. However, that at the end of the day it 333