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1 <br /> <br />Item No: ___5A <br />Meeting Date: March 7, 2018___ <br />Type of Business: Planning Case MU17-001 <br /> <br /> <br />City of Mounds View Staff Report <br />To: Mounds View Planning Commission <br />From: Jon Sevald, City Planner/Supervisor <br />Item Title/Subject: Resolution 1082-18, Finding that a Modification to the <br />Redevelopment Plan for the Mounds View Economic <br />Development Project and a Tax Increment Financing Plan <br />for Tax Increment Financing District No. 1-6 Conform to <br />the General Plans for the Development and <br />Redevelopment of the City. <br /> <br />Introduction <br />MWF Properties (aka Boulevard Apartments Limited Partnership), developer of the “Boulevard”, <br />a proposed 60-unit apartment building to be located on the NW corner of Mounds View Blvd and <br />Groveland Rd, is requesting Tax Increment Financing (TIF) from the Mounds View Economic <br />Development Authority (EDA). <br /> <br />This is not a financial review of the TIF, but a review if the use of TIF is consistent with the <br />Comprehensive Plan. <br /> <br /> <br />Discussion <br />Tax Increment Financing is an economic development tool used to supplement other financing <br />sources. TIF may only be used if it passes the “but, for” test, meaning, the project would not be <br />competed “but, for” TIF assistance. Mounds View has used TIF for a number of projects, the <br />most recent being Medtronic (2003-2033). A Housing TIF may be used for affordable housing. <br /> <br />The Boulevard project will continue to pay the pre-development (2018) property taxes ($3,653), <br />but the additional post-development property taxes will be refunded back to the developer to <br />pay for qualifying expenses (land, site preparation, utilities, other expenses). Over the TIF <br />period, 2020-2045, this is estimated to total $2,362,928. <br /> <br /> <br />Analysis <br />The Comprehensive Plan (2010) addresses TIF in the following areas: <br /> <br />Chapter 7 Economic Development <br /> <br />Resources to Support Economic Development <br />The potential for City assistance such as Tax Increment Financing (TIF), Tax Rebate <br />Financing (TRF), the Business Improvement Partnership Loan Program and the Housing <br />Replacement Program. The City will continue to provide these types of assistance in a <br />manner consistent with the City’s written policies about such assistance. Mounds View