08-23-2004 SPECIAL - Laserfiche WebLink

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new projects the City Council may approve. New projects could include Highway 10 revitalization, blighted housing removal, or support of new commercial development. Options: Staff discussion gravitated toward investigating a 10% reduction in the total value of property in the TIF districts. It was thought that this would be large enough to have a measurable impact on the property tax rate while preserving enough value in TIF to handle any likely future project. The question can be re-examined a year from now and further reductions made if the TIF districts are found to have more resources than needed. However, if too much is taken out of the TIF districts now, it can’t be added back later. The City’s total taxable market value for pay 2004 is $698,253,600. Of this, $111,656,700 is captured in the TIF districts. Reducing TIF by 10% requires finding parcels in the TIF districts with taxable market value of $11,165,670 and de-certifying them so they are placed back on the general tax rolls. In selecting parcels to de-certify, we thought we should preserve in the TIF districts parcels that either front on Highway 10 or have the most potential for redevelopment. Parcels that are away from highway 10 or have recently been fully developed are candidates for de-certification. A further consideration is that Ramsey County assesses administrative fees on the TIF districts. It is an equal fixed fee on each property identification number (PIN) of properties in the district regardless of the value of the property. So a small property pays the same administrative fee as a huge property. These administrative fees are a small consideration in the overall scheme of things, but we want to reduce them while we have the change. This leads us to select PINs with the smallest individual values. Selection: Based upon the criteria listed above, a set of properties was selected for consideration. These include the Realife Coop condominiums, the Mounds View Animal Hospital, the Minnesota Institute of Public Health, the Holiday Station, and seven single family homes in the 7700 blocks of Groveland Avenue and Silver Lake Road. The Mounds View Animal Hospital, Minnesota Institute of Public Health, and Holiday Station all are properties that front on Highway 10. But they all are fairly new structures that are unlikely to redevelop during the remaining lives of the TIF districts and they don’t receive and developer pay-as-you-go payments or other current benefits from TIF. The Realife Coop is mostly on property that is behind properties that face highway 10 and it is also a relatively new structure that is unlikely to redevelop during the remaining