Minutes - 2000/09/25 - Laserfiche WebLink

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Mounds View City Council September 25, 2000 Regular Meeting Page 11 Council Member Quick inquired as to whether, when the district is set up, all the value in that district is taken into account and only the increase in value caused by that project is placed in the pool. Economic Development Coordinator Aaron Parish confirmed the statement of Council Member Quick. Council Member Quick noted the City is not losing 22% of the City's worth but only the increase which the City receives 10% of to do with as the City sees fit within the constraints of state law. Council Member Stigney clarified he had stated that 22% of the City's tax increment financing districts are property based and regardless of how much of the increment the City uses to put into a pool, if there was no Tax Increment Financing district, or if the district were closed out, there could be a development and all of the money from that development would go to the City. Economic Development Coordinator Parish said Council Member Stigney was correct in saying the City receives 22% of the annual tax levy in tax increment financing funds on an annual basis and Council Member Quick had correctly pointed out that it is the increase in taxes. He indicated what was there when the districts were certified still is distributed to the various taxing jurisdictions. He then explained the reason the City certifies TIF districts is to create a tax base. Council Member Quick inquired as to what projects had come into the City using TIF funds. Economic Development Coordinator Parish told the Council the Mounds View Business Park, Multi-Tech Systems Inc., CG Hill & Sons, Sysco, Zep, Midwest I.V., and some residential projects including Silver Lake Point which is a senior facility. He indicated some projects are done with tax increment financing assistance and then grow into developments that do not use tax increment financing assistance. Council Member Stigney noted the proposed amendment is not lowering the percentage of current TIF districts but limiting the creation of new TIF districts to 15%. City Attorney Riggs referred the Council to City Attorney Long's summary letter on this resolution wherein Mr. Long indicated it may or may not be permissible to change the Charter to reflect this TIF restriction. He said it is questionable even if the resolution passes and is put in the Charter that the City could enforce it. Council Member Quick called the question. Mayor Coughlin called for a vote on the motion to move the question. Ayes - 4 Nays - 1 (Stigney) Motion carried. Mayor Coughlin called for a vote on the motion.