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Item No. 4 Meeting Date: June 5th, 2000 Type of Business: WS WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Economic Development Authority From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Tax Increment Finance Policy Revisions Date of Report: August 29, 2018 Background: Back in August, the Economic Development Authority discussed the City’s TIF Policy on a general level, and more specifically, the decertification of particular parcels within existing districts was examined. Before any action was taken, the EDA directed the EDC to examine the TIF Policy as it relates to the aforementioned matters. Attached you will find proposed revisions to the existing TIF policy and its’ associated documents. Changes have been placed in italics for your reference. Based on input from the Economic Development Commission, the following is a synopsis of significant proposed changes/additions for the policy. • A section entitled “Administration, Pooled Funds, and Parcel Decertification” has been added to the policy. The language associated with the “Administration” component is relatively straightforward. In essence, it indicates that TIF funds/districts will be administered in accordance with applicable statutes and local policy. The section entitled “Pooled Funds” articulates policy related to the use of what is commonly referred to excess increment. Provisions for the disbursement of pooled funds, TIF revenue above and beyond existing obligations, are also outlined. With regard to “Parcel Decertification,” it was the position of the Economic Development Commission that parcels should only be decertified based on applicable state statute. If it is the desire of the EDA to return revenue to the respective taxing jurisdictions, this should be done on annual basis in conjunction with the budgetary process. In the event that EDA desires to decertify a parcel, there are provisions within the policy highlighting a procedure for doing so. • The section entitled “Application Process” has been expanded to incorporate additional detail. • Attachment A “Application for Tax Increment Financing” has been updated, but it is not significantly different than the existing application. • There is only one modification associated with Attachment B “Deposit Agreement for Evaluation of Tax Increment Assistance.” In essence, the deposit fee would be raised from $1,000 to $5,000. This is comparable to what other communities are currently requiring. • In the past, the methods used by the City of Elk River and St. Louis Park for evaluating TIF projects have been held up as models. Attachment C “Tax Increment Financing Proposal