Agenda Packets - 2001/07/09 - Laserfiche WebLink

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Mounds View City Council June 11, 2001 Regular Meeting Page 8 in the future and there may not be a grant available at that time which would mean the City’s expense would be dramatically increased over the proposed $150,000. Council Member Stigney asked what percentage of the City’s tax base was in TIF districts. Economic Development Coordinator Parrish indicated the latest estimate is at 20%. He noted that when the districts were first certified the tax base was approximately $280,923 and now the tax base is nearly $2.2 million which indicates to him that TIF has been successful. Council Member Stigney noted that if the City has 20% of its tax base tied up in TIF all property tax payers are contributing funds to that because that much is pulled off the tax roles and they are in essence backing some of the TIF. Council Member Stigney stated that the funds could be used for any TIF approved project and do not need to be used for the proposed pond. He then stated that he questions whether the City should bear the entire increase in costs as he feels the developer should contribute funds to help offset the increase. Council Member Quick indicated that Council Member Stigney is assuming that the development would have happened without TIF funds. He then indicated that the area in question was vacant land and the City could not get anyone to do anything with it. He further indicated that none of that development would have happened without a TIF district. Council Member Stigney indicated that the City still has that much of its tax base tied up in TIF districts. He then indicated that if the City closed out some of those districts it would give some direct benefit to the taxpayers. Council Member Quick commented that if the TIF districts had not been so successful the 20% would not be there meaning the City has done a good job with TIF. Council Member Stigney indicated Council Member Quick was correct but stated he felt it was time to look at the districts to see if any could be closed out. Council Member Quick indicated the City had made deals and needed to let the districts run out. Council Member Stigney stated he felt the private developer should share in the increased costs for the pond project. Council Member Thomas noted that all of the information being discussed was speculative and indicated she would be more comfortable if the project were re-evaluated to determine if the project could be built for less. MOTION/SECOND: Thomas/Stigney. To Table Resolution 5567 and Direct Staff to Investigate Whether the Project Could be Changed to Keep on Budget.