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Mounds View EDA August 25, 2003 <br />Regular Meeting Page 3 <br /> <br />B. Set a Public Hearing for 6:35 p.m. Monday, September 22, 2003 to Receive 87 <br />Public Input and Pass Upon the Revised Tax Abatement Finance Policy & 88 <br />Application. 89 <br /> 90 <br />David Jahnke of 8428 Eastwood Road commented that he feels TIF was abused by the City and 91 <br />he has never gotten a report on how that was worked out with the state auditor. 92 <br /> 93 <br />Council Member Quick indicated that he took exception to the use of the word abuse as the City 94 <br />did not abuse the TIF system it was simply a matter of missing documentation. He then said that 95 <br />a staff member forgot to incorporate some information on tax increment and the state said the 96 <br />school district was not notified but the superintendent was at the meeting. 97 <br /> 98 <br />Council Member Stigney commented that the other part was that the City did not specify what 99 <br />parcels. 100 <br /> 101 <br />Mr. Jahnke indicated that he feels when the district has served its purpose it should be closed to 102 <br />get the money back on the general tax role. He then gave an example of a City that sacrificed tax 103 <br />money to create one job at $4.50 per hour. 104 <br /> 105 <br />Council Member Quick asked what happens to the taxes that are being paid on the property when 106 <br />a property is placed in a TIF district. 107 <br /> 108 <br />Finance Director Hansen indicated that if a property is put into a TIF district and is paying 109 <br />$10,000 in taxes before development that amount is split according to the formulas some to the 110 <br />City, some to the County, and some to the school district then, after development if another 111 <br />$15,000 is generated in new taxes the new taxes are captured by the TIF district. 112 <br /> 113 <br />Council Member Quick asked what would happen to the $15,000. 114 <br /> 115 <br />Finance Director Hansen indicated that the $15,000 comes to the City. 116 <br /> 117 <br />Mayor Linke indicated there is also 10% off the top for administration. 118 <br /> 119 <br />Council Member Quick asked if a TIF district is allowed to continue forever. 120 <br /> 121 <br />Finance Director Hansen indicated there are limits in state law and the maximum is 26 years but 122 <br />something less can be set up. 123 <br /> 124 <br />Finance Director Hansen explained that case with the state auditor was settled about three 125 <br />months ago and it was referred to the attorney general for mediation after other venues and the 126 <br />basis of the settlement was the City admitted no wrong doing and agreed to create no new TIF 127 <br />district for a few months and promised to comply with all TIF laws in the future. He then said 128