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The Mounds View Vision <br />A Thriving Desirable Community <br /> <br /> <br />Item No: 6A <br />Meeting Date: May 13, 2019 <br />Type of Business: EDA Business <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: EDA President and Commissioners <br />From: Brian Beeman, Assistant City Administrator <br />Item Title/Subject: Resolution 322-EDA-19 TIF Analysis for Skyline Motel Site <br /> <br />Introduction: <br />The EDA is purchasing the Skyline Motel site as a redevelopment opportunity. The expected closing date <br />is mid-May, 2019. In order to consider a redevelopment TIF district the State of MN requires that a TIF <br />analysis identifying the percentage of blight and substandard structures be completed to determine if the <br />parcels qualify to create a TIF district. <br /> <br />Discussion: <br />Staff has received a proposal from LHB who conducts TIF analysis across Minnesota. The proposal is <br />necessary in outlining the scope of work to be completed and the analysis is required by the State of MN <br />before creating a TIF district. LHB has completed over 200 TIF district analysis. <br /> <br />Staff has had discussions with Ehler’s, the City’s financial consultant and they highly recommend LHB. <br />Ehler’s has also indicated that a TIF can be used to pay back the developer or it can be used to make the <br />City whole in a situation where the developer is not able to pay the price that the City has into the property. <br />Therefore, Ehler’s recommends that the City consider creating a TIF district if feasible. <br /> <br />Strategic Plan Strategy/Goal: <br />Create and maintain a positive business climate where businesses want to locate and remain in Mounds <br />View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and <br />support redevelopment & development. <br /> <br />Financial Impact: <br />Redevelopment projects typically take a loss on the front end of the deal. However, revenues are recovered <br />in the long-term through property taxes, community investment, the creation of more jobs, and an <br />improvement to the property. There would potentially be no financial impact to the EDA in a situation where <br />the EDA would be able to recover the money invested into the purchase of the property. If the EDA is <br />successful in creating a TIF district then according to Ehler’s the EDA can recoup their costs of the project. <br /> <br />Recommendation: <br />Consider resolution 19-EDA-322 by motion. <br /> <br />Respectfully submitted, <br /> <br /> ________________________ <br />Brian Beeman <br />Assistant City Administrator <br /> <br /> <br />Attachments: <br />1) Resolution 19-EDA-322 & LHB’s TIF Analysis Proposal