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2 will generally limit the use of these to situations in which their use will enable the City to attract a new business, retain or expand an existing business, provide new employment opportunities, enhance the City’s tax base, or otherwise improve the appearance or vitality of the local business economy. The City will continually monitor and periodically evaluate its programs and policies about development and redevelopment assistance to make certain they are helping the City meet its economic development goals, priorities and objectives. Chapter 9 Implementation Tax Increment Financing Tax Increment Financing (TIF) is a funding technique that takes advantage of development or redevelopment to pay public development or redevelopment costs. The tax increment is the difference in tax capacity and tax revenues generated after development has occurred compared with the tax capacity and tax revenues that the property was generating before the new development. The City then uses this “captured value” to repay the public costs that are eligible expenditures (acquiring property, removing old structures, site and utility improvements). It has been the general philosophy of Mounds View to use the “pay as you go” approach for assisting a development through tax increment financing. With this approach, the City limits its financial risk by reimbursing the developer for the agreed upon and eligible project costs after the developer has completed the project. This policy ensures that new construction will generate the increments and the City does not issue bonds for financing a project. TIF is an implementation device for economic development and redevelopment. It is Staff’s opinion that the use of a Housing TIF is consistent with the above sections of the Comprehensive Plan, and is necessary in order to redevelop this property. Summary Tax Increment Financing is the use of future property taxes generated by the project, for qualifying expenses to acquire and construct the project. Prior to the City Council holding a Public Hearing to consider approving the TIF (March 12th), the Planning Commission is requested to consider if the use of TIF is consistent with the Comprehensive Plan. James Lehnhoff (Ehlers & Associates) is the City’s TIF advisor, and will be in attendance to explain the attached document, and address any questions about TIF and its use for this project. Recommendation Staff recommends approval of Resolution 1082-18. The Planning Commission is requested to consider the following options: 1. Resolution 1082-18, approving the request is attached.