Minutes - 2001/05/29 - Laserfiche WebLink

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Mounds View City Council May 29, 2001 Regular Meeting Page 16 • Economic Development Coordinator Parrish indicated he could approach the developer and property owners but asked Council for direction as to what type of contribution he should be asking for. Council Member Marty stated he felt Staff should be asking for an equal percentage of the increase from the developer and property owners. Council Member Quick asked how the City was participating in the Mermaid project. Economic Development Coordinator Parrish explained that the City had committed to picking up any costs for the pond above the redevelopment grant and Ramsey County's contribution. Council Member Quick clarified that the City had made the commitment to pick up the amount above and beyond what there currently is funding for. Economic Development Coordinator Parrish indicated the City had expressed a willingness to provide TIF financing for the project. MOTION/SECOND: Thomas/Stigney. To Table this Matter to the Next Council Meeting for More Information. Ayes - 2 (Thomas/Stigney) Nays 3 (Sonterre/Marty/Quick) Motion failed. Council Member Marty noted the State is talking about decreasing even further the amounts that are taxable to businesses. Economic Development Coordinator Parrish indicated there are two items that have an influence on the amount of TIF money. The first is a substantial property tax rate compression across all classes which limits the amount of revenue that can be generated. The second is moving basic school funding to the State level and that portion of property taxes that are captured in TIF could be reduced by 30 to 40 %. He then explained that the City does have outstanding bond obligations and, if the amount coming in were reduced the City would have less to pay with. He also explained that the bonds go out to 2003 and 2004 and noted the City should be able to cover its obligations as there are provisions in the legislation for that. Council Member Marty questioned how cautious the City needed to be with its TIF funds in light of the proposed change. Economic Development Coordinator Pamsh indicated that any implementation does not take place right away and said the City is looking at one or two years of needing to be cautious. Council Member Thomas stated that, unless a date is specified, the date would be July 1, 2002. • Council Member Stigney stated he would like to make a comment to Council Member Quick's comment concerning the commitment to the developer. He then stated that Council had directed