HomeMy WebLinkAbout01-27-2003
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
Monday, January 27, 2003
6:30 p.m.
1. CALL TO ORDER
2. ROLL CALL: President Linke, Vice President Stigney, Commissioner Quick,
Commissioner Marty, Commissioner Gunn
3. APPROVAL OF AGENDA
4. APPROVAL OF MINUTES:
A. EDA Minutes, October 14, 2002
5. CONSENT AGENDA
6. EDA BUSINESS
7. REPORTS
A. Discussion on the Use of Tax Increment Financing (TIF) by the City of Mounds View
8. NEXT EDA MEETING: Monday, February 10, 2003
9. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
Regular Meeting
October 14, 2002
Mounds View City Hall
2401 Highway 10, Mounds View, MN 55112
6:37 P.M.
1. CALL MEETING TO ORDER
2. ROLL CALL: Stigney, Thomas, Quick, Marty, and Sonterre
NOT PRESENT: None.
3. APPROVAL OF AGENDA
MOTION/SECOND: Thomas/Quick. To Approve the Agenda for October 14, 2002 as
presented.
Ayes – 4 Nays – 0 Motion carried.
4. APPROVAL OF EDA MINUTES
A. September 9, 2002 Minutes
MOTION/SECOND: Thomas/Quick. To Approve the Minutes of September 9, 2002 as
Presented.
Ayes – 4 Nays – 0 Motion carried.
5. CONSENT AGENDA
None.
6. EDA BUSINESS
A. Consider Resolution 02-EDA-168, a Resolution Authorizing and Approving
the Execution of a Certificate of Completion Related to the Former City-
Owned Four-Plex at 2091 Hillview Road.
Community Development Director Ericson indicated that the City bought the above listed
property from Housing and Urban Development and offered it for sale to renovation specialists in
Mounds View EDA October 14, 2002
Regular Meeting Page 2
the area. The property was sold on February 11, 2002 with a purchase and redevelopment
agreement being approved. He then indicated that the renovations have been completed and it
looks like a brand new building.
Community Development Director Ericson indicated that the City needed to execute a Certificate
of Completion to release the purchasers and eliminate any right of the City to take over the
property.
MOTION/SECOND: Stigney/Thomas. To Waive the Reading and Approve Resolution 02-
EDA-168, a Resolution Authorizing and Approving the Execution of a Certificate of Completion
Related to the Former City-Owned Four Plex at 2091 Hillview Road.
Ayes – 4 Nays – 0 Motion carried.
Commissioner Marty arrived at 6:40 p.m.
7. REPORTS
None.
8. NEXT EDA MEETING: October 28, 2002
9. ADJOURNMENT
President Sonterre adjourned the meeting at 6:41 p.m.
Respectfully submitted,
Recorded and transcribed by:
Joan Lenzmeier
TimeSaver Off Site Secretarial, Inc.
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Item No. 7A
Meeting Date: January 27, 2003
Type of Business: EDA
WS: Work Session; PH: Public Hearing;
CA: Consent Agenda; EDA: EDA Business
City of Mounds View Staff Report
To: Mounds View City Council
From: Aaron Backman, Economic Development Coordinator
Item Title/Subject: Discussion on the Use of Tax Increment Financing (TIF) by the
City of Mounds View
Date of Report: January 27, 2003
Background
Tax Increment Financing or TIF is a financing tool which captures and redirects new property
taxes paid by private development to promote development which would not occur “but for”
assistance. It is the ability to capture and use the increased property tax revenues from new
development within a defined geographic area. TIF districts must be located in a Project Area
or a Development District. A TIF district is a designated group of parcels where tax
increments can be generated. The City of Mounds View currently has three TIF districts (See
the attached map on p. 3 of this report).
When establishing a District, the City’s responsibilities include setting the boundaries of the
TIF District, writing the TIF Plan, notifying other tax jurisdictions, holding a public hearing,
justifying the “but-for” test, approving a TIF resolution, drafting and approving the developer
agreement, and administration. The TIF Plan controls the use of TIF. It is subject to specific
statutory criteria. The key contents are: district description, expected development and
contracts, findings, budget for costs and revenue sources, parcels to be acquired, maximum
debt to be incurred, duration, current and future tax capacities, estimate of tax increment,
impacts on jurisdictions, and studies.
There are six types of TIF Districts that are governed by different rules: Redevelopment,
Economic Development, Housing, Soils Condition, Renewal & Renovation, and Hazardous
Site. All three of Mounds View TIF Districts are redevelopment districts. The maximum
duration for our type of district is 26 years. Restrictions include that at least 90% of the
increments must be used to correct redevelopment issues. One way to describe TIF-eligible
costs is to say it is those activities that are related to public infrastructure or that enable the
designated site to be redeveloped.
Eligible uses for TIF include, but are not limited to land acquisition, demolition and clearance,
removal of hazardous substances, site improvements, relocation, installation of utilities, roads,
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sidewalks, and parking facilities, financing interest, and administration. Administration is
broadly defined to be any cost of the EDA not related to qualifying project costs. This can
include the preparation of the development plan, advertising, legal, eminent domain, etc. The
City of Mounds View has used TIF resources for land acquisition, demolition, utilities, parking
lots, bike paths, roads, interest costs, legal and administrative costs. The most recently
approved TIF use was for the demolition of the former Perkins restaurant building. Up to this
point the City has not relocated homes or businesses due to redevelopment projects.
Demolition of former Perkins Restaurant (11/02)
Construction of Highway 10 Business Center (1/03)
What are not permissible uses of TIF by the City? In general, building amenities and
equipment are not fundable. Management of facilities or the use of TIF for operations is not
appropriate. Tax increments may not be used for acquisition, construction, renovation or
operation of government or school district facilities. Since July 2001, no tax increment from
any district may be used for public parks, community centers or recreational facilities. The
City of Mounds View has in the past has spent significant TIF resources to develop the
Mounds View Community Center. Any expansion of the MVCC would now have to be funded
with non-TIF dollars.
TIF reports are filed with the Office of the State Auditor (OSA) annually. OSA reviews the
City’s expenditures to ensure compliance with statutory requirements.
______________________________________
Aaron Backman, Economic Development Coordinator
(763) 717-4029
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(TIF) by the City of Mounds View.doc
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