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HomeMy WebLinkAbout01-27-2003PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting January 27, 2003 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:35 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Stigney, Quick (arrived 6:50 p.m.), Marty (arrived 6:36 p.m.), Gunn and Linke NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Stigney. To Approve the Agenda for January 27, 2003 as presented. Ayes – 3 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. October 14, 2002 Minutes MOTION/SECOND: Stigney/Gunn. To Approve the Minutes of October 14, 2002 as Presented. Ayes – 3 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS None. 7. REPORTS A. Discussion on the Use of Tax Increment Financing (TIF) by the City of Mounds View Mounds View EDA January 27, 2003 Regular Meeting Page 2 Commissioner Marty arrived at 6:36 p.m. Economic Development Coordinator Backman addressed the Council and provided information on the use of Tax Increment Financing by the City of Mounds View including requirements and restrictions for using TIF funds. Commissioner Marty noted the Staff report indicated restrictions include that 90% of increments must be used to correct redevelopment issues and then asked if this was a new rule or whether some districts would need to be decertified. Economic Development Coordinator Backman explained that the rule of 90% has been around since 1989 but does not predate the City’s TIF districts as they were created in 1986 and 1988 which allows the City the flexibility. He then explained that it would be possible to decertify specific parcels if Council deemed them able to go back onto the tax rolls and said a good example would be the Highway 10 Business Center as the City assisted the builder with the demolition by using TIF dollars but has not promised them multiyear TIF. Vice President Stigney indicated he would like the new Council to discuss whether it is in the City’s best interest to close out parcels and bring them back onto the tax rolls or leave them in TIF for the life of the District. President Linke asked how much longer the TIF Districts would go. Economic Development Coordinator Backman indicated that two Districts would close in 2014 and one District would close in 2012. Vice President Stigney said he questions whether parcels such as the Mounds View Animal Hospital should be left in the TIF District or be put back on the tax rolls now that the project is complete. Economic Development Coordinator Backman indicated that increment from the Districts, because of unlimited pooling, could be used for improvements in other areas to benefit the City and businesses within the City. President Linke indicated he would like further information before being asked to make a determination as to whether the parcels should stay in the District for the life of the District or be placed back on the tax rolls. Vice President Stigney indicated he would like the parcels to go back to the taxpayers. He then said he realizes the City catches the money for TIF but the money does not go into the City’s general fund. He further suggested that Council discuss the matter at a work session in the future. Mounds View EDA January 27, 2003 Regular Meeting Page 3 Commissioner Marty indicated it was his understanding that the majority of the District increment goes into the TIF pool whereas if on the City’s regular tax rolls some of the money is removed and sent to Ramsey County, the State and the School District. Economic Development Coordinator Backman recommended waiting to see what happens with revenues over the next year due to class rate compression. Commissioner Quick arrived at 6:50 p.m. Commissioner Marty commented that the former and current Finance Director have both been saying that 2003 will be lowest year as far as zeroing out and 2004 will go up and create some pool. He then said he is also concerned that the State of Minnesota has been cutting taxes for commercial businesses and he wants to make sure there is enough money to pay off the TIF bonds existing. He further commented that he would like to keep this in the forefront and review the parcels for possible de-certification. Economic Development Coordinator Backman indicated the ability to decertify parcels may depend on future plans for a specific project. The Authority asked Staff to look into whether MIPH is paying taxes. Commissioner Marty indicated that it appears from the map that part of the Mermaid parking lot is not in the TIF District. Economic Development Coordinator Backman indicated that a portion of that parcel was not included in the process. Commissioner Gunn asked whether building bike paths and sidewalks would be an allowed usage for TIF funds. Economic Development Coordinator Backman indicated that bike paths would be an appropriate use of TIF dollars and that has been done in the past. Commissioner Marty asked what the current balance for this year is in the pool. Economic Development Coordinator Backman indicated he would defer the specific answer to Finance Director Hansen but commented that cash flows were low and there was a need for interfund borrowing so the balance is modest at this time but should change in following years once the bond payment is completed. Commissioner Marty indicated it was his understanding that there would be approximately Mounds View EDA January 27, 2003 Regular Meeting Page 4 $750,000 next year. Economic Development Coordinator Backman indicated that was approximately correct. 8. NEXT EDA MEETING: February 10, 2003 9. ADJOURNMENT President Linke adjourned the meeting at 6:56 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc.