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Mounds View Planning Commission July 5, 2006 Regular Meeting Page 17 ________________________________________________________________________ Commissioner Scotch said the TIF moneys coming back are available for other projects. Director Ericson said the TIF laws say it can only be spent on projects to reduce that obligation. It could be spent in the Medtronic TIF district area only. Coordinator Backman clarified that the older districts allow for pooling. This is not the case for the Medtronic TIF district. It can only be spent in that district. This is reflective of the Legislature. Commissioner Scotch asked where the funding comes from to make improvements to the inner city. Mr. Backman stated it would come from districts one, two and three. There would be about $1.0 million available per year for projects. Commissioner Hegland restated that the Economic Development Commission recommended staying with scenario one. He asked on what data was this decision made and why. Coordinator Backman indicated that there was simply a higher demand for dollars than dollars available. The EDC recognized that they want to keep the levy rates down to the lowest possible level. Commission Scotch asked what projects came forth that the EDC wants to work on first. Coordinator Backman said the EDC is in sync with the Council to prioritize projects. The EDC is looking at improvements along County Road 10, housing, infrastructure and how to allocate dollars equitably. When you get into the realm of infrastructure, equity comes to the floor. Commissioner Hull indicated that even with $46 million worth of expenditures, he likes Scenario two as it gives something back to the taxpayers and seems to make more sense. Commissioner Hegland said none of this makes any sense. The City Council is responsible for the City and the Planning Commission is responsible for making decisions on codes and code compliance. He believes the information is inadequate to make the decision the Council is asking the Planning Commission to make. Nobody understands how this works or if it costs a reasonable amount for the gain received. Chair Stevenson reported the Planning Commission is not ready to give an opinion. Commissioner Scotch finds it a privilege that the EDC, the EDA and the City Council asked for the Commission’s opinion. She believes more collaboration with the Council and the EDC equals better decisions. If the Planning Commission were more educated on all the numbers and factors, it could form an opinion. Chair Stevenson asked Coordinator Backman for a quick summation of TIF and what it is the City is looking for from the Planning Commission. Coordinator Backman deferred to Director Ericson. Director Ericson clarified that the whole premise of tax increment financing is that a municipality or a taxing jurisdiction is able to leverage future tax dollars generated by a development to help pay for