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Mounds View EDA January 27, 2003 Regular Meeting Page 2 Commissioner Marty arrived at 6:36 p.m. 46 47 Economic Development Coordinator Backman addressed the Council and provided information 48 on the use of Tax Increment Financing by the City of Mounds View including requirements and 49 restrictions for using TIF funds. 50 51 Commissioner Marty noted the Staff report indicated restrictions include that 90% of increments 52 must be used to correct redevelopment issues and then asked if this was a new rule or whether 53 some districts would need to be decertified. 54 55 Economic Development Coordinator Backman explained that the rule of 90% has been around 56 since 1989 but does not predate the City’s TIF districts as they were created in 1986 and 1988 57 which allows the City the flexibility. He then explained that it would be possible to decertify 58 specific parcels if Council deemed them able to go back onto the tax rolls and said a good 59 example would be the Highway 10 Business Center as the City assisted the builder with the 60 demolition by using TIF dollars but has not promised them multiyear TIF. 61 62 Vice President Stigney indicated he would like the new Council to discuss whether it is in the 63 City’s best interest to close out parcels and bring them back onto the tax rolls or leave them in 64 TIF for the life of the District. 65 66 President Linke asked how much longer the TIF Districts would go. 67 68 Economic Development Coordinator Backman indicated that two Districts would close in 2014 69 and one District would close in 2012. 70 71 Vice President Stigney said he questions whether parcels such as the Mounds View Animal 72 Hospital should be left in the TIF District or be put back on the tax rolls now that the project is 73 complete. 74 75 Economic Development Coordinator Backman indicated that increment from the Districts, 76 because of unlimited pooling, could be used for improvements in other areas to benefit the City 77 and businesses within the City. 78 79 President Linke indicated he would like further information before being asked to make a 80 determination as to whether the parcels should stay in the District for the life of the District or be 81 placed back on the tax rolls. 82 83 Vice President Stigney indicated he would like the parcels to go back to the taxpayers. He then 84 said he realizes the City catches the money for TIF but the money does not go into the City’s 85 general fund. He further suggested that Council discuss the matter at a work session in the 86 future. 87