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Mounds View Planning Commission July 5, 2006 <br />Regular Meeting Page 16 <br />________________________________________________________________________ <br /> <br />Director Ericson indicated the other aspect is to look at the TIF policy and to make a determination as <br />to whether or not it makes sense and represents everything the Planning Commission and City <br />Council wants to accomplish. Director Ericson provided a TIF policy recently adopted by St. <br />Anthony for comparison. <br /> <br />Director Ericson stated the City Council is looking for the opinion of the Planning Commission. They <br />received feedback from the Economic Development Commission (EDC) also. <br /> <br />Director Ericson stated the reality is the three TIF districts will expire in 2013, 2014 and 2015. This <br />would be the end of the increments. They have identified approximately $50 million dollars worth of <br />projects that could be supported by TIF. Only $14.9 million in TIF available. Any reduction would <br />have a likewise reduction in the programs that could be supported. <br /> <br />Chair Stevenson ask for clarification on what they are charged to do at this meeting. <br /> <br />Director Ericson explained that the EDA would like the feedback and input from the Planning <br />Commission as to whether they should maintain the status quo or take steps to reduce the amount of <br />increment generated in Mounds View. If the Commission does want to consider reducing the <br />increment, how they would go about it. If there are changes required to the TIF policy, what could be <br />amended or incorporated. <br /> <br />Chair Stevenson asked for further clarification. He asked if the task for the Commission is to not <br />necessarily decide on one of the scenarios but whether the Commission would support continuing <br />TIF as is or with minor changes to it. Director Ericson said that is accurate. <br /> <br />The Planning Commission asked to hear from Economic Development Coordinator Aaron Backman. <br />Mr. Backman told the Planning Commission the EDC supports Scenario 1. The EDC prioritized <br />projects in 2005 looking at a variety of items and generated a list of projects. Their view is to stay the <br />course and to proceed with projects. There are more projects than there are dollars to go around. As <br />to the issue of how the TIF is now, the City is in good condition. Bonds have been paid off and the <br />City is in good shape compared to other cities relative to financial obligations and dollars on hand. <br /> <br />Commissioner Scotch indicated she is surprised this is before the Planning Commission for question. <br />The Commission was told nine months to a year ago that any type of funding brought before the <br />Commission was not to be discussed. Now they are looking for the Commission’s opinion. She also <br />asked if some of the projects would have been funded if the City had not given so much to the <br />Medtronic project. <br /> <br />Commissioner Hegland indicated he does not think the only thing to consider here is how much TIF <br />funding we have at the moment. The problem is the TIF money changes as property is developed. <br />The Medtronic project is going to develop an area and taxes would increase. A cost benefit analysis <br />must be done on each of these. <br /> <br />Director Ericson clarified that the issue with the Medtronic TIF district and the increment generated <br />for that project is completely unrelated to the issues on the table and what could be funded. The TIF <br />laws state that any TIF increment generated on the Medtronic site go to the Medtronic site.