07-05-2006 - Laserfiche WebLink

Home Browse Search

Mounds View Planning Commission July 5, 2006 Regular Meeting Page 14 ________________________________________________________________________ MOTION/SECOND: Commissioner Miller /Commissioner Hegland, to approve resolution 843-06 recommending approval of a preliminary plat for the subdivision of 8360 Long Lake Road; Mounds View Planning Case number MA2006-002. Ayes – 5 Nays – 0 Motion carried. _________________________________________________________________________ 6. Other Planning Activity A. Continuation: Review TIF Policies, TIF Scenarios and Economic Development Funding Priorities. Community Development Director Ericson stated this item was on the June 21, 2006 Planning Commission agenda for discussion but was pulled from consideration due in part to time constraints. Director Ericson referred to a collection of information on the TIF before the Planning Commission. The City Council has been discussing its TIF policy and Economic Development Strategy for the last six months or so. It started taking shape when the Medtronic process started. Questions were asked about the extent of tax increment financing in the City. It became evident that the Council needed to look at the status of the three TIF districts as to when they expire, how much increment is generated, look at the percentage of tax capacity captured in these districts and provide some consideration as to the future of increment collected and whether the City should maintain the status quo or take action to reduce the amount of increment collected. Director Ericson, referring to financial spreadsheets, presented five separate scenarios that estimate the amount of TIF increment collected over the remaining life of the original three districts. The first scenario is a status quo response to TIF revenues. The second scenario represents a decrease in revenues by decertifying District 3. The third scenario contemplates a reduction of TIF revenues by changing the fiscal disparities election on the three original districts to “B” rather than “A.” The fourth scenario combines the effects of scenarios two and three, which is to say a decertification of District 3 plus changing the fiscal disparities election to “B” for Districts 1 and 2. The fifth and final scenario considers an across the board reduction in TIF by ten percent. Director Ericson stated if no changes are made to the existing TIF districts, the amount of Market Value Tax capacity captured in Mounds View TIF districts is 16.29 percent. Factoring in the Medtronic development and its projected $96 million market value, the amount of the City’s tax capacity captured in TIF districts would rise to 22.32 percent. Scenario one represents this option. Director Ericson explained that scenario two, decertification of District 3, the net effect to a property owner with a median valued home in the City would be a reduction of $32 annually. To give up the $2.1 million, the property owners would save $32 on the median valued home. Director Ericson stated scenario three represents the effect of a change to the fiscal disparities election for the original three districts. The amount of increment collected from the three districts would amount to a cumulative $9,000,000, a reduction in revenues by more than five million dollars.