Agenda Packets - 1985/09/03 - Laserfiche WebLink

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9 PROPOSAL The law firm of Holmes h Graven. Chartered, through its i'Mhnirpl Analysis Department. is pleased to submit this prorossl to the City of Mounds View, Miniesuta, in order to assist the City in achieving the objectives of the highway commercial and office projects through the financing tool known as tax increment financing. The redevulopment areas within the City of Mounds View are described below. Development District/Tax Increment District Considerations For purposes of this proposal, the development district, also known as the empowering area, would include the triangular shaped area on Highway 10 designated for redevelopment. The exact be* idaries of the development district will be determined as a part of the plan preparation. Authorizce. under Minnesota Statutes Section 472A inclusive, the Municipal Development District Act, the creation of ac empowering area the size of the tax, increment financing district or larger is necessary in order to empower the city to make use of tax increment firancics within the project boundaries. Tax increment revenues from a tax inert ment financing district may be spent outside of the district but must be spent , inside of the empowering area boundary. We would propose that within the desclopmenl district area a single ax increment district be ereated. Tax increment financing refers a a funding technique that utilizes increases in assessed valuation and thc property taxes attributed to new development to assist in the financing of public development costs. This tax increment financing district would be a single site district at the present time and could be modified in the future to includa future development. Tax increments derived frcm the office site may be 63ed to assist with public improvement costs w',thin ale empowering a, -ea. H. District Clbtibdity The tax increment district would most likely qualify Fs a reuevelopment district, meaning that tax increments may be collected for 25 years f,om the collection of the fir?i tax increment. As part of the statute eligiD,lity requirements for a ledevelapment district, the proposed district must have a certain percentage of parcels with buildings in a blighted condition. Buildings which are ousotete or do not fit u, with the city'a zoning or lard use requirements also meet a portion of the eligibility test. It appear>:,cm a preliminary overview that sufficient buildings exist that are substandard or incompatible with the City's -I-