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Mounds View Planning Commission March 7, 2018 Regular Meeting Page 2 ________________________________________________________________________ 4. Citizens Requests and Comments on Items Not on the Agenda None. ______________________________________________________________________________ 5. Planning Cases A. Resolution 1082-18, Finding that a Modification to the Redevelopment Plan for the Mounds View Economic Development Project and a Tax Increment Financing Plan for Tax Increment Financing District No. 1-6 Conform to the General Plans for the Development and Redevelopment of the City. City Planner/Supervisor Sevald stated MWF Properties developer of the “Boulevard”, a proposed 60-unit apartment building to be located on the NW corner of Mounds View Boulevard and Groveland Road, is requesting Tax Increment Financing (TIF) from the Mounds View Economic Development Authority (EDA). This is not a financial review of the TIF, but rather a review if the use of TIF is consistent with the Comprehensive Plan. He explained Tax Increment Financing is an economic development tool used to supplement other financing sources. TIF may only be used if it passes the “but, for” test, meaning, the project would not be competed “but, for” TIF assistance. Mounds View has used TIF for a number of projects, the most recent being Medtronic (2003-2033). James Lehnhoff, Ehlers & Associates, introduced himself to the Commission and provided a high-level overview of the TIF proposed for this project. He reiterated that the Commission was being asked to advice the City Council on if the use of the proposed TIF plan was in conformance with the Comprehensive Plan for the City and explained the EDA would be reviewing the financial plan. He provided the Commission with a definition of TIF and a TIF term example. The various types of housing districts were described and it was noted they would have a 26-year maximum term. The projected taxes for the Boulevard project was reviewed with the Commission and he explained the project would continue to pay the pre- development (2018) property taxes ($3,653), but the additional post-development property taxes will be refunded back to the developer to pay for qualifying expenses (land, site preparation, utilities, other expenses). Over the TIF period, 2020-2045, this is estimated to total $2,362,928. Commissioner Monn questioned what the term of the Boulevard TIF District would be. Mr. Lehnhoff explained the term length for TIF housing districts was 25 years after the first year, or 26 years. He commented further on the pay-as-you-go type TIF note stating this option had a 15- year term. He reported the Boulevard project had a funding gap of $546,000 and indicated a pay-as-you-go TIF note would provide the necessary assistance. Commissioner Farmer asked how the TIF plan would be adjusted if the estimated costs were to shift. Mr. Lehnhoff commented this issue would be addressed in the Developers Agreement. He explained project costs would be verified by staff in order to ensure the TIF assistance was