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Mounds View Planning Commission February 1, 2006 Regular Meeting Page 12 ________________________________________________________________________ Community Development Director Ericson stated that as to hiring another inspector, there would be one during the peak period of construction that would be supported by the permit fees. He indicated that the city has to document to the State that the money collected from fees is being used to administer the permits, so tax dollars will not be used to pay for an inspector. Ms. Ehlers reviewed how the taxes would work, and explained how the valuation would actually make the tax rate go down unless the City raised the levy amount. Commissioner Scotch indicated that her understanding was that the city made $1 for the school district. Mr. Ehlers stated that the market value referendum for the schools is not included in TIF. She indicated that because the value of the land is higher, the tax on a $150,000 home could go down by $1. Commissioner Scotch indicated that the way she understands it is that the city is at 30% capacity on TIF, and there are not more monies to be had. She added that this is on a 25-year period of time. She stated that most communities are at 8 to 10% for eight years. Community Development Director Ericson stated that as to whether the city is maxed out, there is no magic number. He indicated he had asked the State auditor if there was a threshold that was recommended and they said no; every community is different. He stated that as for repayment, the city has other districts that are 25 year districts also. He indicated that the city may de-certify one district to help balance this. He stated they are a small community without a lot of commercial tax base, and the areas set up as TIF Districts have been successful. He agreed that with this proposal the city’s TIF financing will get higher, but maybe only for a year or two. He added that whether the City gives Medtronic any more TIF money, this will still all be in the TIF District. He stated the only difference is it would pay off sooner. Ms. Haake indicated that a policy on a TIF cap is something that can be set, but Mounds View has not set one. She stated that if TIF Districts come off, we need to watch the City Council so more are not put on. Ms. Haake stated that when the city did their Comprehensive Plan amendment they took a year and held numerous meetings. She indicated that until Medtronic knocked on their door the Comprehensive Plan said this land was recreational; now it says it is office. She stated that if this ever went to a judge she thinks it could be argued on whether that is the right thing. She indicated that the Planning Commission could say it is a done deal, but if they tell the City Council to hold down TIF it would help. Commissioner Scotch stated she does have a concern that the City did not look at all the things that come after a large development. She asked if the city could ever reach a point where they cannot pay for something they need. She added that she does not think the city got what they should have for the land. Community Development Director Ericson stated that the city is looking at what they will need in the negotiations for Phase II, such as possibly bringing Well #4 back up. He indicated that the