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SUMMARIES A. Business Subsidy Policies and Procedures. Last updated in 2005, the Subsidies Policy is intended to be the over-arching policy document for the use of business subsidies, which may include tax increment financing, tax rebate financing, grants, business improvement loans, etc. The overall purpose, as stated on the first page of the document, is as follows: The fundamental purpose of business subsidies in the City is to encourage desirable development or redevelopment that would not otherwise occur “but for” the assistance provided through business subsidies. It is the intent of the City to provide a minimum amount of business subsidies, as well as other incentives that the City may deem appropriate, at the shortest term required for the project to proceed. The City has granted a variety of business subsidies over the years, most recently with the Medtronic project. Before Medtronic, the City authorized a TIF note for SYSCO Foods in the amount of $250,000. The City has covered demolition expenses at the former Perkins Site as well as stormwater management improvements at the former Amoco site. B. Tax Increment Financing (TIF) Policy. This document reviews in detail the policy for use of tax increment financing. Re-adopted in 2000, the policy works in conjunction with the Subsidies Policy and sets forth the conditions under which TIF will be used. Included with the policy document is the application packet for TIF financing. Mounds View established its first of three initial TIF districts in 1986, with the second and third districts in 1988. TIF District 1 supported the creation and development of the Mounds View Office and Business Park in the southeast corner of the City, while District 2, identified as the Highway 10 Development District, included parcels in the northwest quadrant of the City on the south side of County 10 north of County Road I. The third of the original three districts was created in 1988 to support the SYSCO Foods project. A fourth district was created in 1997 to support the planned renovation and commercial component of the Community Center. The commercial partner backed out and the City decertified the district without ever having collected increment. The final district (TIF District 5) was created last year in support of the Medtronic project. At this time, there are only four outstanding TIF obligations in the City: The Silver Lake Pointe senior residential project on County Road I, The Mermaid, SYSCO and Medtronic. Silver Lake Point will pay off in 2011, the mermaid in 2013 and SYSCO in 2008. The Medtronic note will pay off (at the latest) in 2033. C. Tax Rebate (Abatement) Program. In 1997, the Legislature authorized the use of an additional tool for development projects called Tax Abatement. Tax abatement allows a local government to refund all or a portion of the taxes paid on most properties for a period of up to 10 years. Unlike TIF, the use of tax abatement is voluntary for each separate unit of government. For example, a city and county may decide to refund its portion of property taxes generated to attract a new development, and the school district could continue to collect its portion. Mounds View adopted a Tax Abatement policy in 2000 with revisions in 2003. The fundamental policy for tax abatement, which is consistent with the TIF and Business Subsidy policies, is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided. To date, Mounds View has not considered or approved an application for a tax rebate.