HomeMy WebLinkAbout07-22-1999 ECONOMIC DEVELOPMENT COMMISSION AGENDA
July 22, 1999
7:30 A.M.
MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS
I. CALL TO ORDER '(k° A.M.
2. ROLL C'AL/L (Present = P, Absent = A)
.Ca Ison Marty
Goft J Thomason (EDA Liaison)
t/ Fj: Id v Dorgan (Staff)
/� ahn Jopke (Staff)
�/ Men I/ Carroll (Staff)
3. APPROVE EDC MINUTES
June 24, 1999 �� li I exti
.
Action: Motion
Second USS
Vote r D
4. SPECIAL BUSINESS : None anticipated.
5. EDC BUSINESS:
A. Comprehensive Guide Plan — Economic Development section
Continuation of prior discussions; review/modification/approval of latest
draft
B. Discussion of TIF options
(per City Council/EDA direction)
6. Report of Commissioners, Staff/ and EDA Liaison
7. ADJOURN "I A.M.
Next Regularly Scheduled Meeting: August 26, 1999
411PADATA\GROUPSECONDENAEDA-EDCEDC\AGENDA99\AGEN0722.WPG
• ECONOMIC DEVELOPMENT COMMISSION AGENDA
July 22, 1999
7:30 A.M.
MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS
I. CALL TO ORDER A.M.
2. ROLL CALL (Present = P, Absent = A)
Carlson Marty
Goff Thomason (EDA Liaison)
Field Dorgan (Staff)
Kahn Jopke (Staff)
Olsen Carroll (Staff)
Walther
3. APPROVE EDC MINUTES
June 24, 1999
• Action: Motion
Second
Vote
4. SPECIAL BUSINESS : None anticipated.
5. EDC BUSINESS:
A. Comprehensive Guide Plan — Economic Development section
Continuation of prior discussions; review/modification/approval of latest
draft
B. Discussion of TIF options
(per City Council/EDA direction)
6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN A.M.
Next Regularly Scheduled Meeting: August 26, 1999
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\AGENDA99\AG EN0722.WPG
r
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
June 24, 1999
City of Mounds View, City Council Chambers
2401 Highway 10, Mounds View, MN 55112
1. CALL TO ORDER:
The meeting was called to order at approximately 7:39 a.m. by Chairperson Cindy Carlson.
2. ROLL CALL:
iv
Members present: Cindy Carlson, Rosemary Goff,Tom Field,Julie Olsen, Jerry Kahn, EDA
Liaison Lynn Thomason.
Members absent: Sean Walther,Wendy Marty.
Staff present: Economic Development Coordinator Kevin Carroll.
ill3. APPROVAL OF MINUTES:
Motion/Second: Goff/Field to approve the minutes from May 27, 1999.
Motion Carried 5 Ayes 0 Nays
[Commissioner Kahn had not yet arrived at the time of the vote.]
4. SPECIAL BUSINESS
None.
5. EDC-BUSINESS
A. Comprehensive Guide Plan -- Economic Development Section
The EDC members extensively discussed the latest draft of the Economic Development section
of the Comprehensive Guide Plan. The consensus was:
1. To adopt Section One [Community Economic Goals] as is.
2. To revise Section Two [Priorities] as follows:
a. In the third bullet point, delete everything after"Attract new
commercial and industrial development."
b. Take the language deleted from the third bullet point and add it to the
"preamble" of Section Two, so that it reads ["relocated" language shown
in italics]: "In order to expand the City's tax base and thereby provide property
tax relief for homeowners, the City's economic development priorities are,
• in general, as follows:"
3. To revise Section Three [Resources] as follows:
a. In the fourth bullet point,retain "Visible evidence of new commercial
activity, storefront improvements, remodeling, and other indications of
local economic health," but delete the remainder of the sentence, i.e.,
"along the Highway 10 corridor and in the City's other business
districts."
b. In the fifth bullet point,retain "Ongoing efforts to enhance the
appearance of, and to better coordinate planning for the further
development of the Highway 10 corridor" (but deleting the word
"business" after"Highway 10") and add"and the community at large."
c. In the ninth bullet point, retain "Parcels of land that are suitable for
development or redevelopment (deleting the phrase "especially along
Highway 10" after "Parcels of land.")
d. Delete bullet point eleven ("Strong local interest...").
e. Delete bullet points thirteen and fourteen ("Historically low interest
rates" and"A continuing`legislative inclination" to...).
f. In bullet point fifteen, retain "A plentiful supply of life-cycle' housing
to accommodate a wide range of incomes," but delete "including
numerous rental units and other varieties of affordable housing for
entry-level workers.
g. Delete bullet point eighteen.
4. To revise Section Four [Challenges] as follows:
a. In each of the thirteen bullet points, delete overly"directive" language
such as "the City will."
b. Combine the first two bullet points and then list the identified
"responses" in sub-bullet point format rather than in a narrative format.
c. Revisit bullet points four and five at the request of one of the
Commissioners.
d. In bullet point six, add"develop a greater sense of community" as an
additional-responsive_action, and delete the words "design theme"that
appeared immediately after "Highway 10."
e. In bullet point eight, after the phrase "...recruitment/marketing
techniques," delete "phone calls, personalized letters, networking at
social business functions, etc.".
e. In bullet point thirteen, modify existing language so that it reads:
"...participate in seeking creative solutions to the financing challenges
inherent in potential redevelopment projects."
5. To address Section Five [Financial Incentives] at the next EDC meeting, due to
lack of time.
•
EDC Chair Carlson suggested that the EDC members bring to the next meeting their specific
suggestions regarding any further revisions/deletions/additions, so that an effort can be made to
finalize the EDC's work on this document.
B. Discussion of TIF options
Economic Development Coordinator Carroll introduced this topic and gave an overview
regarding the advice/input/recommendations that the City Council has requested from the EDC
in connection with the Council's ongoing review of the City's TIF policies, practices and
philosophies. Inasmuch as three Commissioners were missing by the time the EDC got to this
topic, and in view of the very limited amount of time remaining for the meeting, it was agreed
that the Commissioners would take the next 30 days to continue reviewing the material
previously provided,with the understanding that they would contact City staff members if they
wanted or needed more documents or information on the topic in question. Further discussion
of the issue will take place at the EDC's next meeting on July 22, 1999.
6. ADJOURNMENT
There being no further business before the Commission, this meeting of the Economic
Development Commission adjourned at approximately 9:15 a.m.
R p ctfully Sub i• toed,
tl V� a'l/Z
vin Carroll
Economic Development Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\ IIN99\EDCMIN06.WPD
•
3
•
To: Economic Development Commission Members [MOIlAtIDUM
• From: Kevin Carroll, Economic Development Coordinator
Subject: Comprehensive Guide Plan update
(Economic Development Section)
Date: July 15, 1999
Attached hereto you will find the latest draft of the Economic Development section of
the Comprehensive Guide Plan. For a summary of the changes that have been made
since the last meeting, please review the minutes for the EDC's 6-24-99 meeting
(which are included in the current packet).
I believe that Sections One, Two and Three are now in a "final"form, if the last
discussion of those Sections is any indication.
With respect to Section Four, one Commissioner expressed a desire at the last
meeting to revisit the fourth and fifth bullet points. However, at that point insufficient
time remained to determine the nature of the objections, if any, to those paragraphs.
Further discussion may therefore be required or warranted.
With respect to Section Five, which also was not discussed at the last meeting due to
time constraints, it is recommended that the Commissioners think about whether they
are satisfied with the concise summary of financial incentives that currently appears in
the working draft. Ideally, anyone who is not satisfied should be prepared to suggest
specific additions, deletions or revisions. Please bear in mind, however, that inasmuch
as the City Council's ongoing review of city TIF policies will probably not be
concluded for several months, the Economic Development Section of the
Comprehensive Guide Plan may (by necessity) have to be more general and/or
generic than some Commissioners might otherwise prefer.
It might be useful at this point to begin thinking about the type of economic
development planning that the EDC can or should do when the EDC's work on the
ED Section of the Comprehensive Guide Plan has been completed. We have
previously talked about a "hierarchy" in the planning process, which envisions the
discussion and adoption of general goals and priorities (as reflected in the ED Section),
followed by the discussion and adoption of specific strategies and tactics designed to
accomplish the previously agreed upon objectives.
Several months ago, I provided each of you with copies of portions of a very detailed
Economic Development Plan that was adopted by the City Council in April of 1986
■
after 18 months of work by the Council and City staff. That Plan, of course, pre-dated
the creation of the current TIF districts, and was crafted at a time when current
economic development practices were in their infancy. The City's business parks are
now virtually full, and the City is very close to being fully developed, so it could be
argued that there is no need to devote another 18 months (or more)to the
development of new, "formal" Economic Development Plan comparable to the 1986
version.
However, the EDC may, at some point in the near future, want to discuss the
development of alternative types of economic development documents. Examples
would including a less formal document, such as a work plan, that would include
"shorter-term" specifics that were not suitable for inclusion in the "longer-term"
Comprehensive Guide Plan. If time permits, perhaps some preliminary attention
could be devoted to this possibility at the July 22nd EDC meeting. If the topic is
considered at that time, the issue of timing should also be addressed, because it is
possible that the Council/EDA may want the EDC to defer any further [more detailed]
planning until the final version of the Comprehensive Guide Plan is approved and
adopted.
• contact me byphone (612-717-4029) or by e-mail
As always, please feel free to
(kevinc@rcmn-t.org) if you have any questions or suggestions.
)JAW
Carrol • 12-717-4029)
Economic Development Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\072299A.MEM
•
• 1999 Mounds
View
Comprehensive
Update
Plan
Guide
ECONOMIC DEVELOPMENT
• 1. COMMUNITY ECONOMIC GOALS
Mounds View's future economic development will be governed and directed by a
set of basic goals, principles and assumptions. The most important of these are set
forth below.
The redevelopment or expansion of an existing business, new commercial or
industrial development, or residential housing will be considered even if it involves
the possible acquisition, demolition or relocation of an existing business or
residential-home.
The redevelopment or expansion of an existing business, or new commercial or
industrial development, or residential housing will be considered if a reasonable
opportunity for public input has been provided, particularly by those business
owners and homeowners who could potentially be affected. Whether or not such
parties support (or, at a minimum, do not oppose) any proposed redevelopment,
expansion, new development or new project will be one of the more important
factors in determining the City's position with respect to any such proposal. In the
• final analysis, the City's goal will be to determine whether the actual or potential
1
benefits to the City (from any such proposal) outweigh the actual or potential
negative impacts on individuals, businesses or the community as a whole.
The City will actively market itself to selected "target audiences" as a prime
location for specific types of businesses and industries. In order to continuously
refine and review its objectives as economic conditions and realities change, the
City (through the EDC and/or the EDA) will annually update its list of"targeted"
businesses and industries. Although the City will respond in a timely and
businesslike manner to all requests for information about the City's suitability as a
business location, City staff members will focus their attention on those requests
that come from businesses of the type that appear on the City's "target list."
In light of the increasing "mobility" of businesses in general, the City's future
economic development efforts will focus on retaining existing businesses and
industries in the community, in some cases by helping to create circumstances under
which they can expand to meet their customers' needs and/or their own desire to
grow and prosper financially. Given the fact that the City is almost fully developed,
and in order to improve the City's tax base and improve the City's visual aesthetics,
the City also intends to devote significant attention to redeveloping aging, obsolete,
blighted or otherwise underdeveloped structures. Additionally, the City will explore
the opportunities that are presented by the few remaining parcels of undeveloped
property. In some cases this may involve assisting the owners of such parcels with
the marketing of their properties to prospective developers.
The City recognizes that the maintenance of an adequate workforce will be one of
the most serious challenges that will face business and industry for much of the
foreseeable future, and that the private sector and/or educational institutions will be
primarily_responsible_for addressing and resolving workforce issues. However, the
Cityprepared to assist with such efforts by working collaboratively with others
is
who are concerned about such issues. The nature of the City's assistance may
include having City representatives serve on local and regional committees,
commissions and agencies devoted to this important topic.
•
2
• 2. PRIORITIES FOR ECONOMIC DEVELOPMENT DECISIONS
In order to expand the City's tax base and thereby provide property tax relief for
homeowners, the City of Mounds View's economic development prioritiesre, in
general, as follows: '• f
1
• Retain existing businesses that make positive contributions to the local
economy.
• Provide a reasonable and prudent level of assistance (financial or otherwise)
to enable existing businesses to expand their operations and/or facilities in
Mounds View.
• Attract new commercial and industrial development.
• Encourage the development of new office space, warehouse space and retail
operations that will enable Mounds View to offer services, facilities and
goods that are not presently available in the community, or that are
S unavailable in sufficient quantity or quality.
• Pursue the redevelopment of parcels and sites that are aesthetically
displeasing, contaminated, blighted, abandoned, or otherwise
underdeveloped.
• Facilitate communications between and among the City, Ramsey County,
local businesses, the Chamber of Commerce, local educational institutions,
and any-other--parties-or-entities having-a_direct or indirect interest in the
continued economic prosperity of Mounds View.
- .. : _ . ___..;. . . . e'- - _, the City will continually
develop and review more specific priorities in order to provide guidance to City
staff, business owners, developers, and residents with respect to intended areas of
concentration (geographic and otherwise).
3
3. RESOURCES TO SUPPORT ECONOMIC DEVELOPMENT
•
"Resources to support economic development" can be defined as any facts,
programs or circumstances that enhance Mounds View's ability to attract new
businesses, retain and expand existing businesses, or assist in the preservation of a
vibrant, diverselocal economy. Such resources currently include the following:
• Close proximity to Interstate 35-W, allowing relatively quick and easy access
to the downtown areas of Minneapolis and St. Paul, and to other portions of
the Twin Cities metropolitan area.
- • Good internal traffic circulation.
• Successful, attractive business parks.
• Visible evidence of new commercial activity, storefront improvements,
remodeling, and other indications of local economic health.
,i, • Ongoing efforts to enhance the appearance of, and to better coordinate
fib,
planning for the further development of, the Highway 10 corridor and the
community at large.
,,,, • Local business owners who are interested in expanding their operations and
x) improving the appearance of their properties. 2.,,v,
,,
• The potential availability of tax increment financing for appropriate «p
1 development or redevelopment projects.
• The potential availability of city-assisted funding for cosmetic and operational
improvements, through the Business Improvement Partnership Loan program. `)U
• Parcels of land that are suitable for development or redevelopment.
• An active local Chamber of Commerce.
i,5` 4'i.,i • A coordinated approach to local planning and development issues, as
evidenced by the ongoing work of the I-35W Corridor Coalition.
4
• A plentiful supply of"life-cycle"housing to accommodate a wide range of
incomes.
• Easy access to mass transit for workers who need or prefer to use such
methods of transportation.
• The proximity of the Anoka County Airport in Blaine.
4. ECONOMIC DEVELOPMENT CHALLENGES
The effectiveness of local economic development can be enhanced by continuously
assessing, and attempting to address, any circumstances that might negatively
impact the local business climate. Such circumstances include those that might:
a. make a developer or business owner less inclined to
establish a new business in Mounds View; or
b. make a developer or business owner less inclined to relocate an
410 existing business to Mounds View; or
c. make an existing Mounds View business less inclined to
expand its operation in Mounds View; or
d. make an existing Mounds View business consider moving its
operation to another community; or
e. adversely affect, in some other way, the ability of an existing
Mounds View business to achieve economic success.
The preceding circumstances are, to varying degrees, mitigated by the presence of
financial-and other-incentives-that encourage or allow economic development.
Successful economic development will continue to require the careful monitoring of
these existing and developing challenges so that realistic and timely efforts can be
made to emphasize Mounds View's many positive attributes in order to effectively
minimize or counteract negative perceptions or circumstances. Examples of such
future efforts may include the following:
• In order to address the relative scarcity of raw land suitable for new
construction, and in light of the small size of the few remaining parcels of
4110 undeveloped land,
5
• prepare and periodically update an inventory of undeveloped land,
• • list undeveloped parcels on the City web site with the knowledge and
consent of their owners/agent,
• acquire and/or clear underdeveloped sites suitable for new
construction,
• focus development efforts on businesses suitable for smaller lots, and
investigate the possibility of combining adjoining lots to accommodate
larger businesses.
• In situations involving unrealistic price expectations on the part of those
who own undeveloped parcels of land(i.e., asking prices well in excess of
actual market value),
• wait for the market to "catch up" with currently excessive asking prices
and
• investigate options that might reduce those prices (offering relocation
assistance,.etc.).
4110 • In cases involving actual or perceived neighborhood opposition to tc^
commercial development of certain types in certain areas,
• survey nearby residents to determine their preferences and/or ( Oi• arrange neighborhood meetings or public hearings m connection with
�
proposed commercial development(s).
— • In situations where owners of"underdeveloped"parcels (especially )
residential homeowners and owners of old or obsolete commercial
structures) are unwilling to sell, thereby delaying or preventing the
development of those properties to their highest and best use,
• arrange meetings with the owners,
• provide current information to them regarding the potential market
value of their properties,
• develop or refine City relocation policies, or
• consider the use of eminent domain in appropriate circumstances.
• 6
I ' 4-
,)3,pgfr, , t / l,1�,
It 1
at
';-ce/1
--• In order to coun • • = iossible perception that ounds View lacks a
• commonly known or readily ascertainable "identity" : ' . • : - -
111uV •
• continue work on the development and improvement of Highway 1 0,
• maintain a high profile within the local and regional business
communities, ( •
• attempt to develop a greater sense of community, and 0 I i
• handle "business climate" inquiries promptly and professionally.
• Given the scarcity of attractive office space and rental warehouse/office
space, encourage new construction to meet these needs.
• Due to the potentially high cost of some of the available methods of
aggressively recruiting the most attractive "new business"prospects and/or
"marketing"Mounds View as a business location, investigate and use the
more cost-effective and/or more carefully "targeted" recruitment/marketing
techniques.
III • Inasmuch as limited funds are available for the funding of business
incubator programs, "enterprise facilitation"projects or other initiatives
designed to help new businesses get started locally,
• pursue grants to fund such programs,
• establish collaborations with other governmental entities and non-profit
organizations, and
• serve as a clearinghouse for information about assistance (financial and
otherwise)that may be available from sources other than the City.
— • Although a competitive economic development climate currently exists, in l,,.•'
which municipalities will sometimes try to entice businesses to move from 'i
one community to another, „/O
, kt
• avoid "raiding" nearby communities for relocation prospects, and , ,1
• work together cooperatively with them whenever possible.
• In light of the fact that the Twin Cities area is currently experiencing one of
. (/(/6 fla' I ' '
r 40
the lowest levels of unemployment in modern times, resulting in concerns
0 about the community's (and the region 's) ability to provide an adequate , 1
workforce, participate in groups and/or activities designed to seek solutions ;l
to ongoing workforce issues.
• In light of a continuing "legislative inclination" to restrict future use(s) of dip
tax increment financing, monitor proposed legislation and lobby for or '�
against legislation, where appr. ,nate. •
• Due to the high cost of redev'loping property vs. developing property,
participate in seeking creati 'e solutions to the financing challenges inherent in
potential redevelopment p r.jects. 4 „S
; '117(ti ,,'1 1,A/Sso'‘)A,v 12./A/6`/\/Vt I
5. FINANCIAL INCE 'TIVES / t
Tax increment financing and ether available forms of assistance will continue to be i°4(4'At(
used by the City, where and , hen it is appropriate to do so. City financial.assistance
will generally be limited to si ations in which its use will enable the City to attract a /i
new business, retain or expane an existing business, provide new employment Q 2
opportunities, enhance the Ci ,'s tax base;or otherwise improve the appearance or
vitality of the local business cc.' omy. Tax increment financing will be used in alit
manner consistent with the City' written TIF Policy, which may be amended from t
i AVC
time to time to reflect changes in thr local economy and/or the public assistance
philosophies of the members of the 'ty Council and/or the Economic Development
Authority.
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4
• 1999 Mounds View
Comprehensive
Guode PlanUpdate
ECONOMIC DEVELOPMENT
1. COMMUNITY ECONOMIC GOALS
•
Mounds View's future economic development will be governed and directed by a
set of basic goals, principles and assumptions. The most important of these are set
forth below.
The redevelopment or expansion of an existing business, new commercial or
industrial development, or residential housing will be considered even if it involves
the possible acquisition, demolition or relocation of an existing business or
residential home.
The redevelopment or expansion of an existing business, or new commercial or
industrial development, or residential housing will be considered if a reasonable
opportunity for public input has been provided, particularly by those business
owners and homeowners who could potentially be affected. Whether or not such
parties support (or, at a minimum, do not oppose) any proposed redevelopment,
expansion, new development or new project will be one of the more important
factors in determining the City's position with respect to any such proposal. In the
final analysis, the City's goal will be to determine whether the actual or potential
r 1
• 2. PRIORITIES FOR ECONOMIC DEVELOPMENT DECISIONS
In order to expand the City's tax base and thereby provide property tax relief for
homeowners, the City of Mounds View's economic development priorities are, in
general, as follows:
• Retain existing businesses that make positive contributions to the local
economy.
• Provide a reasonable and prudent level of assistance (financial or otherwise)
to enable existing businesses to expand their operations and/or facilities in
Mounds View.
• Attract new commercial and industrial development.
• Encourage the development of new office space, warehouse space and retail
operations that will enable Mounds View to offer services, facilities and
goods that are not presently available in the community, or that are
• unavailable in sufficient quantity or quality.
• Pursue the redevelopment of parcels and sites that are aesthetically
displeasing, contaminated, blighted, abandoned, or otherwise
underdeveloped.
• Facilitate communications between and among the City,Ramsey County,
local businesses, the Chamber of Commerce, local educational institutions,
and any other parties or entities having a direct or indirect interest in the
continued economic prosperity of Mounds View.
Beyond the preceding general priorities and objectives, the City will continually
develop and review more specific priorities in order to provide guidance to City
staff, business owners, developers, and residents with respect to intended areas of
concentration (geographic and otherwise).
3
• A plentiful supply of"life-cycle"housing to accommodate a wide range of
• incomes.
• Easy access to mass transit for workers who need or prefer to use such
methods of transportation.
• The proximity of the Anoka County Airport in Blaine.
4. ECONOMIC DEVELOPMENT CHALLENGES
The effectiveness of local economic development can be enhanced by continuously
assessing, and attempting to address, any circumstances that might negatively
impact the local business climate. Such circumstances include those that might:
a. make a developer or business owner less inclined to
establish a new business in Mounds View; or
b. make a developer or business owner less inclined to relocate an
existing business to Mounds View; or
• c. make an existing Mounds View business less inclined to
expand its operation in Mounds View; or
d. make an existing Mounds View business consider moving its
operation to another community; or
e. adversely affect, in some other way, the ability of an existing
Mounds View business to achieve economic success.
The preceding circumstances are, to varying degrees, mitigated by the presence of
financial and other incentives that encourage or allow economic development.
Successful economic development will continue to require the careful monitoring of
these existing and developing challenges so that realistic and timely efforts can be
made to emphasize Mounds View's many positive attributes in order to effectively
minimize or counteract negative perceptions or circumstances. Examples of such
future efforts may include the following:
• In order to address the relative scarcity of raw land suitable for new
construction, and in light of the small size of the few remaining parcels of
undeveloped land,
• 5
• In order to counter the possible perception that Mounds View lacks a
4110 commonly known or readily ascertainable "identity" that would attract new
businesses,
• continue work on the development and improvement of Highway 10,
• maintain a high profile within the local and regional business
communities,
• attempt to develop a greater sense of community, and
• handle "business climate" inquiries promptly and professionally.
• Given the scarcity of attractive office space and rental warehouse/office
space, encourage new construction to meet these needs.
• Due to the potentially high cost of some of the available methods of
aggressively recruiting the most attractive "new business"prospects and/or
"marketing"Mounds View as a business location, investigate and use the
more cost-effective and/or more carefully "targeted" recruitment/marketing
techniques.
• • Inasmuch as limited funds are available for the funding of business
incubator programs, "enterprise facilitation"projects or other initiatives
designed to help new businesses get started locally,
• pursue grants to fund such programs,
• establish collaborations with other governmental entities and non-profit
organizations, and
• serve as a clearinghouse for information about assistance (fmancial and
otherwise) that may be available from sources other than the City.
• Although a competitive economic development climate currently exists, in
which municipalities will sometimes try to entice businesses to move from
one community to another,
• avoid "raiding"nearby communities for relocation prospects, and
• work together cooperatively with them whenever possible.
• In light of the fact that the Twin Cities area is currently experiencing one of
111 7
1 To: Economic Development Commission Members [MOIIAIIDUII
From: Kevin Carroll, Economic Development Coordinator
Subject: City Council/EDA Request for Review of TIF
Options
Date: July 15, 1999
The topic identified above was briefly discussed at the very end of the last EDC
meeting on June 24, 1999. Further discussion was clearly required. The issues
remain the same, so I have attached a copy of my earlier Memorandum (dated June
22nd)regarding this matter, along with copies of the various attachments identified in
the Memo.
Please contact me, as much in advance of the 7-22 meeting as possible, if you need or
want any additional information or documents regarding this subject.
0,44--(50
• Kevin Carroll (67-717-4029
Economic Development Coordinator
N:\DATAGROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\072299B.MEM
IP
•
To: Economic Development Commission Members
From: Kevin Carroll, Economic Development Coordinator [IIORAIIDUM
Subject: City Council/EDA Request for Review of TIF
Options
Date: June 22, 1999
As you may recall, during the May 27th EDC meeting it was suggested that the EDC
seek some guidance from the City Council/EDA regarding the extent to which EDC
analysis of the City's TIF policy was required or desired in connection with the EDC's
work on the Economic Development Section of the Comprehensive Guide Plan. The
TIF issue also happened to be on the agenda for the City Council work session that
was held a few days later (on June 7th). At that time, and as part of the Council's
ongoing review of the subject, the Council was presented with a Staff Report(see
attached copy)from Rick Jopke in which he outlined three general options regarding
the City's future handling of tax increment financing issues. The City Council agreed
that EDC input on the three options in question would be useful, but some concern
was expressed regarding the scope of the EDC's review and possible delays in the
• completion of the EDC's work on its portion of the Comprehensive Guide Plan.
Accordingly, it was suggested that the Council provide the EDC with specific written
direction(s) in order to clarify its advisory role in this particular instance.
Attached hereto is a copy of a related Staff Report that was considered by the City
Council at its meeting on June 2I st. At that meeting, the Council adopted the specific
direction that appears in quotation marks in the second paragraph of the Staff Report.
The two aforementioned Staff Reports are essentially self-explanatory. Rick Jopke and
I will be available at the meeting on June 24th to provide further background
information, if needed, regarding the three options in question. The City Council did
not specify a deadline for the "EDC recommendations"that it has requested, so if the
topic cannot be adequately covered in the time available on June 24th, it will be put on
the agenda for additional discussion at the July 22nd EDC meeting.
R,4,44,
L i
Kevin Carroll (. -717-40 9)
Economic Development Coordinator
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• TA GROUP EDA-EDC\EDC\STAFF99\062499B.MEM
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•
Item No.
Staff Report No.
Meeting Date: 6/7/99
Type of Business: WK
• WK: Work Session;PH:Public Hearing;
CA: Consent Agenda;EDAB:EDA Business
City of Mounds View Staff Report
To: Mayor and City Council Members
From: Rick Jopke, Community Development Director
Item Title/Subject: Discussion of Tax Increment Financing in Mounds View
Date of Report: June 2 1999
Background:
An item is scheduled on the June 7, 1999 work session agenda to continue the discussion of tax
increment financing in Mounds View. At previous work sessions staff has provided a general
overview of the tax increment districts in Mounds View. At the June 7th work session staff
would like to review options with the City Council to determine how the City should proceed
with tax increment financing in the future.
Discussion:
• To facilitate the discussion staff has identified three general options for City Council
consideration. These include the following:
1. Continue the current practice. The City Council each year during the budget process
would allocate all available tax increment funds(TIF)to general project areas.
Currently funds are allocated to debt service, pay-as-you-go TIF obligations,
administration costs, and discretionary projects. Discretionary projects have included
housing programs such as the housing replacement program,the business loan
program, Highway 10 redevelopment, and the Community Center project. Through this
budget process a current year budget and a long term financial plan are adopted. The
City Council/EDA review specific projects as they are presented and must approve
resolutions and development assistance agreements as necessary separate from the
budget process. The City Council/EDA/EDC may want to review and amend the City's
current TIF policy, if necessary,to ensure that tax increment financing is used to meet
current City goals.
2. Use current practice but set ceiling on the amount of funds which go into the TIF pool
for use on discretionary projects. Any tax increments received above the ceiling
amount would be returned to the County. Current projections indicate that there will be
varying amounts of discretionary funds available through the year 2015 when the
districts expire. The amounts vary from$235,000 to $920,000. The City
• Council/EDA could annually, during the budget process, determine what projects
should be funded from the TIF pool in the upcoming year and allocate the necessary
City of Mounds View Staff Report
• June 21, 1999
Page 2
• amount of funds. Any amount of TIF funds actually received over and above the
allocated amount of funds would then be returned to Ramsey County for distribution to
the county, school district and the city instead of going into the TIF pool. Based on the
above projections, if the City Council/EDA allocated$235,000 to discretionary
projects,the range of funds returned to the County would be$0 to$685,000 depending
on what year it was. The City Council/EDA could also approve pay-as-you-go TIF
assistance to assist specific projects within existing TIF districts.
3. Return all tax increments not necessary for debt service,pay-as-you-go obligations and
administrative costs to the County. Under this scenario,the City Council/EDA
determines that tax increment financing is no longer appropriate for funding new
projects in Mounds View. Existing obligations and associated administrative costs
would be paid off and existing tax increment districts would be decertified when
financially feasible. Existing discretionary projects such as the housing replacement
program,business loan program, and Highway 10 improvements would be eliminated
or funded from other funding sources. Any amount of TIF funds actually received over
and above that which is necessary to meet existing obligations and associated
administrative costs would be returned to Ramsey County for distribution to the
county, school district, and the city. No new pay-as-you-go assistance would be
approved.
• Attached for your information is a summary of the changes which the legislature made to the tax
increment financing law and to the tax class rates. The reduction in tax class rates will reduce
taxes collected and tax increments received.
Requested Action:
Discuss general options regarding how tax increment financing should be used in Mounds View
in the future.
Rick Jopke, Community Development Director
N:\DATA\USERS\RICK)\SHARE\6199TIF.RPT
Item No.
' Staff Report No.
Meeting Date: 6/21/99
Type of Business: WK
• WK: Work Session;PH:Public Hearing;
CA:Consent Agenda;EDAB:EDA Business
Ci of Mounds View Staff Report
To: Mayor and City Council Members
From: Kevin Carroll, Economic Development Coordinator
Item Title/Subject: Request for EDC Review of TIF Policies and Options
Date of Report: June 21, 1999
SUMMARY:
At the City Council meeting that was held on June 7, 1999,Council and staff continued earlier
discussions regarding the topic of tax increment financing. The Council reviewed a staff report
prepared by Community Development Director Rick Jopke, in which he outlined three general policy
options with respect to the City's future use of TIF. The Council indicated that the comments and input
of the Economic Development Commission would be useful in connection with the Council's
consideration of the aforementioned policy options. It was noted that the EDC is currently working on
an Economic Development section for the City's updated Comprehensive Guide Plan,and some concern
was expressed that the EDC'c completion of that work might be unduly delayed if it was believed that
said work now required a comprehensive review of the City's TIF policies.Accordingly, it was suggested
that the City Council/EDA provide the EDC with specific,written direction so that the parameters of its
duties in this regard are clearly understood by all concerned. The following language is therefore
proposed for the Council/EDA's review:
• "The Mounds View City Council/EDA,as part of its ongoing review of the City's TIF policies and
practices,hereby requests that the Economic Development Commission members review and provide
recommendations regarding the TIF policy options outlined in the staff report prepared by Community
Development Director Rick Jopke for the Council's 6-7-99 meeting.This is done with the understanding
that the EDC will subsequently convey to the Council/EDA its recommendation(s)regarding those
options separate from the preparation of the economic development section of the Comprehensive plan
inasmuch as the Council/EDA is already involved in comprehensive,ongoing discussions regarding the
City's past, current and future use(s)of TIF.The EDC's current work on the optional Economic
Development section of the Comprehensive Guide Plan does not require a similarly comprehensive(and
therefore duplicative) review of the City's use of TIF. The Council/EDA will continue to request,from
time to time, that the EDC review and discuss specific TIF-related topics or issues and then provide the
Council with the EDC's advice and/or recommendations in connection therewith."
ACTION TO BE CONSIDERED:
Provide the above-stated direction to the Economic Development Commission concerning its role in
reviewing the City's current policies and objectives concerning the use of tax increment financing.
Kevin Carroll
Economic Development Coordinator
612-717-4029
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