HomeMy WebLinkAbout08-26-1999 * C ,
ECONOMIC DEVELOPMENT COMMISSION AGENDA
August 26, 1999
7:30 A.M.
MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS
I. CALL TO ORDER $ • 0 5 A.M.
2. ROLL CALL (Present = P, Absent = A)
arlson Marty
l Goff Thomason (EDA Liaison)
Field
/Ka 4..°
z$ Jopke (Staff)
✓ Isen ✓Carroll (Staff)
Walther
3. APPROVE EDC MINUTES
July 22, 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 final
draft
B. Discussion of TIF options
(per City Council/EDA direction)
6. Report of Commissioners, Staff and EDA Liaison
7. ADJOURN G` •• II) A.M.
' September
IP Next Regularly Scheduled Meeting: 23, 1999
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\AG ENDA99\AG EN0826.WPG
r` `
r
• Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
July 22, 1999
City of Mounds View, City Council Chambers
2401 Highway 10, Mounds View, MN 55112
I. CALL TO ORDER:
The meeting was called to order at approximately 7:40 a.m. by Chairperson Cindy Carlson.
2. ROLL CALL:
Members present: Cindy Carlson, Tom Field,Julie Olsen,Wendy Marty
Members absent: Sean Walther, Jerry Kahn, Rosemary Goff, EDA Liaison Lynn Thomason.
• Staff present: Community Development Director Rick Jopke, Economic Development
Coordinator Kevin Carroll
3. APPROVAL.OF MINUTES:
Motion/Second: Field/Olsen to approve the minutes from June 22, 1999,with the understanding
that the list of those in attendance will be revised to reflect Community Development Director
Rick Jopke's attendance.
Motion Carried: 4 Ayes 0 Nays
4.- SPECIAL BUSINESS
Economic Development Coordinator Carroll provided the EDC with an update regarding
DTED's decision to award Mounds View a grant in the amount of$333,333 to assist with
stormwater handling improvements in connection with the proposed Mermaid redevelopment
project. Carroll indicated that the project will not move forward unless or until the developers
are able to obtain ownership of certain adjoining parcels of property. If they are unable to
acquire the parcel on which the new [proposed] sedimentation pond was going to be located,
alternative locations for the pond will have to be investigated. In addition, the City must match
the amount of the DTED grant, so if the City declines to provide the project with at least
$333,333 in tax increment [or other] financing, the City may be forced to decline acceptance of
the grant.
• Carroll also advised the EDC that at its next meeting on 7-26-99, the EDA might be taking
action on a request or proposal to remove the Realife and Holiday parcels from TIF District#2.
♦ c
Commissioner Walther,who anticipated that he would be out of town on the day of the [7-22-
• 99] EDC meeting, had contacted Carroll prior to that time to (among other things) convey his
belief that the EDC's opinion/advice should be sought by the EDA before removing any parcels
from any TIF District(s). Chair Carlson agreed, but indicated that the topic in question should
be deferred until after the completion of the EDC's work on the Economic Development section
of the Comprehensive Guide Plan.
5. EDC BUSINESS
A. Comprehensive Guide Plan -- Economic Development Section
The EDC members extensively discussed the most recent draft of the Economic Development
section of the Comprehensive Guide Plan.
1. In Section Two [Priorities], Commissioner Olsen requested that the word
"priorities" in the section title and in the introductory paragraph be replaced by
the word"objectives." The EDC voted 3-1 (Olsen dissenting) to leave the
section title as is, but to add the words "and objectives" after the word
"priorities" in the introductory paragraph. The EDC members also
unanimously agreed to delete the phrase "Beyond the preceding general
priorities and objectives" from the beginning of the first full paragraph that
follows the six bullet points.
2. In Section Three [Resources], Commissioner Olsen requested that the fifth
("Ongoing efforts to enhance...") and eleventh ("A coordinated approach...")
bullet points be deleted. The EDC voted 3-1 (Olsen dissenting) to leave them
in.
3. In Section Four [Challenges], Commissioner Olsen reiterated her belief that the
entire section should be eliminated, but that if it is to remain, she would at least
like to see the fifth bullet point ("In order to counter the possible
perception...") deleted. The EDC voted 3-1 (Olsen dissenting) to revise the
italicized portion to read, "In order to strengthen Mounds View's `identity'...", but to
leave the remainder of the paragraph intact.
The EDC members unanimously agreed to eliminate the 9th ("Although a
competitive...") and 10th ("In light of the fact....") bullet points, although Chair
Carlson wanted the record to reflect that with respect to the latter, the EDC
recognizes the significance of the workforce issue and encourages City staff
members to continue working collaboratively with others to address the issue.
The EDC members unanimously agreed to revise the [formerly] 11t bullet
point to read: "In light of the limited selection of"tools"that are available to the City to
finance or promote economic development, monitor developments affecting economic
development and (where appropriate) make recommendations regarding
alternative, new or improved methods of providing advice, assistance or
encouragement.
• thatdeleted, but
4. It was agreed Section Five [Financial Incentives]would bethat
•
L
the "essence" of the section would be incorporated into Section Three. In
• particular, it was agreed that the [previous] seventh and eight bullet points
would be combined, and that"sub-bullet" points would be created to address
the City's past use(s) of assistance, the City's past and future adherence to
written policies regarding the use of assistance, and the City's plan to regularly
review its related policies and programs.
The three EDC members who were still in attendance at this point in the discussion agreed that
all of the EDC members should review the "final" draft of the ED Section when it is received,
and that Economic Development Coordinator Carroll should be contacted as much in advance
of the 8-26-99 EDC meeting as possible if anyone believes that the "final" draft is not yet ready
to be submitted to the EDA/City Council.
B. Discussion of TIF options
Inasmuch as a quorum no longer existed when the EDC got to this topic, it was agreed that
discussion of the topic would be deferred to the EDC's next meeting on August 26, 1999.
6. ADJOURNMENT
There being no further business before the Commission, this meeting of the Economic
Development Commission adjourned at approximately 9:08 a.m.
•
Res cyoIly Submi ed,
---)
i
a"a4g/
�evin Carroll
Economic Develo4ment Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\MIN99\EDCMIN7.WPD
•
To: Economic Development Commission Members
• I From: Kevin Carroll, Economic Development Coordinator
MEMORANDUM
Subject: Comprehensive Guide Plan update
(Economic Development Section)
Date: August 20, 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 7-22-99
meeting (which are included in the current packet).
I believe that this document is now in its "final" form. At a minimum, I believe it to
be consistent with the discussions that took place between and among the EDC
members who were present at the last meeting. I know that some of you were on
vacation or otherwise unavailable at that time, so if anyone believes that further
revisions are needed, PLEASE notify me of that fact as much in advance of the next
meeting as possible. It would be very useful if you could provide me with specifics
S regarding your proposed changes at that time, so that I can (if appropriate) type up
your suggestions/requests and then distribute them at the meeting. I'm sure that you
all share my desire to conclude this process, so that we can turn our attention to other
matters.
As always, plea e feel free to contact me by phone (612-717-4029) or by e-mail
(kevinc@r ' et.org) i V have any questions or suggestions.
evin Carrot(62=717=4029)
Economic Development Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\O82699A.MEM
•
{
l' S
• 1999 Mounds View
Comprehensive
Guide PIanUpdate .
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 ome.
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
sfinal analysis, the City's goal will be to determine whether the actual or potential
1
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
City is prepared to assist with such efforts by working collaboratively with others
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 priorities and
objectives 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.
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).
111111
3
1
3. RESOURCES TO SUPPORT ECONOMIC DEVELOPMENT
i
"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, diverse local 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.
• Ongoing efforts to enhance the appearance of, and to better coordinate
4110 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
improving the appearance of their properties.
• The potential availability of City assistance for appropriate development or
redevelopment projects.
• Tax increment financing is a type of assistance that has been provided
by the City in the past, and City-assisted funding for cosmetic and
operational improvements has been provided through the Business
Improvement Partnership Loan program.
• These types of City assistance have been,and will continue to be,
provided in a manner consistent with the City's written policies
regarding such assistance, and will generally be limited to situationsin
which their use will enable the City to attract a new business, retain or
• expand an existing business, provide new employment opportunities,
4
•
enhance the City's tax base, or otherwise improve the appearance or
vitality of the local business economy.
• The City will continually monitor and periodically evaluate its
programs and policies regarding development and redevelopment
assistance in order to make certain that they are helping the City meet
its economic development goals, priorities and objectives.
• Parcels of land that are suitable for development or redevelopment.
• An active local Chamber of Commerce.
• A coordinated approach to local planning and development issues, as
evidenced by the ongoing work of the I-35W Corridor Coalition.
• 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
5
,
•
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,
• 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.).
• In cases involving actual or perceived neighborhood opposition to
commercial development of certain types in certain areas,
• survey nearby residents to determine their preferences and/or
• arrange neighborhood meetings or public hearings in connection with
•
6
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.
• In order to strengthen Mounds View's "identity, "
• 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,
111111 • establish collaborations with other governmental entities and non-profit
7
organizations, and
• • serve as a clearinghouse for information about assistance (financial and
otherwise) that may be available from sources other than the City.
• In light of the limited selection of"tools" that are available to the City to
finance or promote economic development, monitor developments affecting
economic development and (where appropriate) make recommendations
regarding alternative, new or improved methods of providing advice,
assistance or encouragement.
• Due to the high cost of redeveloping property vs. developing property,
participate in seeking creative solutions to the fmancing challenges inherent in
potential redevelopment projects.
C:\OFFICE\WPWIN\WPDOCS\COMPPLAN.ED8
S
8
To: Economic Development Commission Members
1 From: Kevin Carroll, Economic Development Coordinator [MORAMDUM
Subject: City Council/EDA Request for Review of TIF Policies and
Procedures
Date: August 20, 1999
As you know, the agendas for the June and July EDC meetings included references to
a topic entitled "Discussion of TIF Options." At neither meeting did we have the time
to discuss the topic in question, in part because of the time that the EDC was
required to devote to the Economic Development Section of the Comprehensive
Guide Plan.
In the meantime, the Council/EDA has continued to address various TIF issues from
time to time. At the City Council work session on August 2"d, and at the EDA
meeting on August 9th, an issue involving the possible "decertification" of two parcels
•
(Realife Cooperative and Holiday Stationstore) in TIF District #2 was discussed.
Although there were clearly some differences of opinion between and among EDA
members regarding how to proceed, the majority of the EDA agreed that a decision
regarding the decertification or removal of any parcels should be deferred until all of
the City's TIF policies, programs and philosophies have been thoroughly reviewed and
then updated or revised (if or where required). The majority of the EDA also seemed
to believe that at least the initial TIF review should be conducted by the EDC.
As a result, the scope of the EDC's analysis will now extend beyond the three "TIF
options" that were referred to in previous EDC packets. The EDA has put few, if
any, limits on the scope of the EDC's TIF review and commentary. Accordingly, I
would suggest that the initial tasks for the EDC should include agreeing upon a
timeframe for its review, specifying the topics (and sub-topics, if any) that will be
considered, determining the order in which they will be addressed, and deciding upon
the general format of the EDC's eventual "report" to the EDA/Council. In short:
draw a roadmap for the journey, so that we will all know where we are going and
when we expect to get there!
•
■
I suspect that the majority of our time at the 8-26-99 meeting will be devoted to
some collective "brainstorming" regarding these preliminary matters, so please be
prepared to offer your comments and suggestions regarding these "process" issues. If
all goes well, we may be able to begin devoting our attention to more "substantive"
issues at the following meeting.
Ke arroll (q3,3,7/17-4029)
Economic Development Coordinator
N:IDATAIGRO UPSIECONDEVIEDA-EDC\EDCISTAFF9910826 99B.M EM
•
•
■
ri
Adopted 5/12/97
Tax Increment Policy
Mounds View Economic Development Authority
Mounds View, Minnesota
GENERAL POLICY:
The Mounds View Economic Development Authority has the powers under the Minnesota Statute Sections
469.124 through 469.137 and Sections 469.001 through 469.047 to govern and monitor the use of tax
increment financing for Mounds View's tax increment districts and the Mounds View development district
which encompasses the entire boundaries of the City of Mounds View. It is the responsibility of the Mounds
View Economic Development Authority to use tax increment financing as a tool to accomplish the City's
economic development and redevelopment goals and objectives. The Mounds View Economic Development
Authority understands and abides by the fundamental principal which makes tax increment financing viable
to encourage development and redevelopment which would not otherwise occur.
The Mounds View Economic Development Authority shall consider tax increment financing in cases that
serve to accomplish the City's development goals and activities as hereby defined in projects eligible for tax
increment financing.
PROJECT ELIGIBLE FOR TAX INCREMENT FINANCING:
Projects eligible for consideration of Tax Increment Financing assistance per the Mounds View Economic
Development Project Plan dated May 9, 1994 include,but are not limited to (1)the attraction,retention,
rehabilitation and preservation of commercial, industrial,retail,residential,recreational and public service
facilities; (2)new and rehabilitated public infrastructure; (3)community and other public service centers; (4)
senior/mature adult and/or other housing development partnerships or other multi-use housing projects and
facilities; (5) other public utilities (including telecommunications); (6)business incubator loan and other
business programs; and(7)transportation systems. More emphasis will be placed on those items which.
increase the tax base, eliminate blight and meet the City's economic and redevelopment goals.
COSTS ELIGIBLE FOR TAX INCREMENT FINANCING:
Project costs qualifying for Tax Increment Financing assistance, as defined under the TIF Act, include
utilities design, landscape design, architectural and engineering fees directly attributable to site work, site
related permits, earthwork/excavation, soils correction, landscaping,utilities (sanitary sewer, storm sewer,
and water), streets and roads, street/parking lot paving, street/parking lot lights, curb and gutter, sidewalks,
land acquisition, special assessment, legal (relating to acquisition, financing, and closing fees), soils tests and
environmental studies, surveys,park dedication fee, SAC, WAC charges,titles insurance and TIF application
deposit.
1
Adopted 5/12/97
DETERMINATION OF AMOUNT OF ASSISTANCE TO APPLICANT:
•
Within TIF Districts
The amount of Tax Increment Financing provided to an applicant will be based, in part, on the analysis of
information provided on the application for Tax Increment Financing assistance (Attachment"A"), amount
of increment generated by the project as evaluated by the City's Financial and/or Bond Counsel and the
City's economic and redevelopment goals.
The level of assistance provided will be evaluated on a case by case basis and may reflect an increase or
decrease in assistance dependant upon the level of increase in the tax base, amount of elimination of blight
and/or a number of variables that may substantiate the need for assistance. An adjustment in the amount of
assistance that can be provided is at the sole discretion of the Board of the Economic Development Authority
as long as the requested uses are legal under the Minnesota State Statues for use of tax increment financing.
Within the Development District(herein referred to as the"City" limits) but outside of TIF Districts
The evaluation of Tax Increment Financing assistance that could be provided to an applicant will be based in
part on(A)the analysis of information provided on the application for Tax Increment Financing assistance
(Attachment"A"), (B) square footage cost of the project, (C) balance available in the Economic
Development Authority excess tax increment fund and(D)proof of need for assistance under the"but for"
test for use of tax increment financing.
TYPES OF ASSISTANCE
Within TIF Districts
Tax Increment Financing can be provided in either"pay as you go"or"up front"payments. "Pay as you go"
is wherein the Mounds View Economic Development Authority compensates the applicant for a
predetermined amount for a predetermined number of years. The applicant pays for(re)development up front
and then annual payments are issued to the applicant based on the need for assistance and increment
generated from the project. "Up front' payments is wherein the Mounds View Economic Development
Authority must issue revenue or general obligation bonds to pay for the(re)development prior to completion
of the project. The increment generated from the project is then used for repayment of the bonds. The
Mounds View Economic Development Authority gives preference to the use of"pay as you go" assistance to
finance private development projects due to the reduced risk to the community. The EDA will consider"up
front"payment projects that would benefit.the entire community and are not possible to be funded under a
"pay-as-you-go"basis.
2
Adopted 5/12/97 •
Within the City but outside of TIF Districts
Financing from the dedicated tax increment fund can be provided in annual installments to the applicant
based on the positive cash flow balance in the Economic Development Authority's dedicated tax increment
fund and need for assistance based on analysis of the"but for"test for the project. The dedicated tax
increment fund includes a value based on the use and is adjusted along with the budget process and goals and
objectives for economic and redevelopment on an annual basis.
APPLICATION FOR TAX INCREMENT FINANCING ASSISTANCE:
The Mounds View Economic Development Authority requires that an Application for Tax Increment
Financing Assistance (Attachment A)be completed and a deposit be collected from the applicant for the
EDA's consultants to investigate the feasibility and need for providing Tax Increment Financing assistance
(Attachment B).
SUBMITTAL OF APPLICATION FORMS:
Applicants requesting Tax Increment Financing assistance within an existing district or in the creation of a
new district, shall be required to complete and submit the following:
1. Application for Tax Increment Financing Assistance
2. Deposit for Review of Tax Increment Financing Assistance
3
Adopted 5/12/97
CITY OF MOUNDS VIEW
APPLICATION FOR TAX INCREMENT FINANCING
PROJECT:
1. Business Name:
Address: •
Telephone#:
Contact:
2. Brief Description of the Business. (Please provide#of years in business under current ownership and
#of years in Mounds View)
3. Present Ownership of the Site:
•
4. Present Project: Building square footage, location of project, size of property, description of
buildings -materials, etc. Attach site plan, if available
5. If Property is to be Subdivided, Show Division Planned.
Adopted 5/12/97
(Attachment"A" Cont.)
6. Estimated Project Costs: (please enclose construction performa, if available.)
a. Land Acquisition $
b. Site Preperation $
c. Utilities $
d. Public Improvements $
e. Landscaping $
f. Hard Building Costs $
g. Construction Management Fee $
h. Architectural& Engineering Fees $
i. Legal Fees $
j. Financing Costs $
k. Broker Costs $
1. Contingencies $
m. Equipment $
n. Other(please specify) $
Total $
7. Total Estimate Market Value at Completion $
(Explain Calculation)
8. Submit an Itemized List of Eligible Costs Qualifying for Assistance (see page 1 of Tax Increment
Policy).
9. Sources of Financing
a. Equity $
b. Bank Loan $
c. Tax Increment Assistance $
d. Industrial Revenue Bonds $
e. Other (please specify source) $
10. Form of Tax Increment Financing Assistance Requested.
Pay As You Go
Bond Issuance
Excess Increment
11. Name &Address of Architect, Engineer, and General Contractor.
Adopted 5/12/97
(Attachment"A" Cont.)
12. Estimated Real Estate Taxes on Project Site upon Completion of Project. (please show calculations.)
13. Project Construction Schedule:
a. Construction start date
b. Construction completion date
c. If phased project:
Year % Complete
Year % Complete
14. Estimated Number of Jobs:
Created (within 2 yrs)
Retained
15. Average Annual Wage Level of Jobs
Created (within 2 yrs)
Retained
16. Is Job Training Assistance Needed?
TAX INCREMENT FINANCING REQUEST:
1. Describe amount,term and purpose for which tax increment financing is required and how the project
fits into the City's economic development and redevelopment goals and objectives_
2. Statement of necessity for use of tax increment financing for project.
Adopted 5/12/97
3. Describe the Potential for Growth.
4. What is the Return on Equity Invested that you or investors need to make the project feasible
5. If Rental Space,What is the Range of Targeted Rental Rates
6. If Rental Space,Who are the tenants and what is the length of their leases.
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT COMMISSION
GUIDELINE FOR THE
ANALYSIS OF THE APPLICATION OF
(NAME OF APPLICANT)
FOR
TAX INCREMENT FINANCING ASSISTANCE
Note: The EDC acts as an advisory body to
the Economic Development Authority,which
Date Reviewed is the governing body(legal and political) for
all disbursements and approvals of tax
increment funds. This document serves as a
guideline to assist the EDC in making
Total Score judgments regarding any proposed use of tax
increment funds. Applicants are hereby
advised that there may be projects that do not
Result of Analysis score high,but that still meet or exceed the
economic development and redevelopment
goals and objectives for the City of Mounds
View. Conversely,there may be projects that
score high,but that do not meet or are not
compatible with the City's goals and
objectives.
Adopted 5/12/97
1. PUBLIC VERSUS PRIVATE INVESTMENT
Private Investment
TIF/Public Investment
Total Investment
Ratio of public vs.private investment
Point Private Public
Value
+ 1 Less than$3 to $1
+2 Over$3 to $1
+ 3 Over$4 to $1
+4 Over $6 to $1
+ 5 Over$8 to $1
2. NUMBER OF EMPLOYEES
(Computed as full time equivalent positions)
Point Number
Value
+ 1 > 1 - 15
+2 > 16 - 30
+ 3 > 31 - 45
+4 > 46 - 75
+ 5 > 75 - plus
•
Current Number of Employees
Estimated Number of New Employees (within the next 2 years)
Total Number of Current and Estimated New Employees
Adopted 5/12/97
3. PUBLIC INVESTMENT PER CURRENT EMPLOYEE
Point
Value INVESTMENT
0 $12,500 +
+ 1 $10,000 - $12,500
+2 $7,500 - $10,000
+3 $5,000 - $7,500
+4 $2,500 - $5,000
+ 5 $ 0 - $2,500
TIF/Public Investment $
Current Number of Employees
Investment per Employee = $
4. ANNUAL PAY LEVEL OF POSITIONS
Point Annual Dollar Total#of Weighted
ValueSalary Weighting Employees Dollar Amt.
0 $ 0 - 14,999 $10,000
+ 1 $15,000 - 24,999 $20,000
+2 $25,000 - 29,999 $27,500
+ 3 $30,000 - 44,999 $37,500
+4 $45,000- 59,999 $52,000
+ 5 $60,000 and Over $60,000
Total Full Time Equivalent
Weighted Average
Adopted 5/12/97
5. REAL ESTATE/PROPERTY TAXES GENERATED
(projected tax revenues should be bases on the existing property tax system and rates plus legislative
future changes if subject to estimation.)
Point Total Projected
Value Annual Taxes
+ 1 Below$25,000
+2 $25,000 - $49,000
+ 3 $50,000 - $99,999
+4 $100,000 - $249,999
+ 5 $250,000 and Over
6. SIGNIFICANT IMPACT MULTIPLIER
Point * Provide Comments regarding
Value Type of Development subjective public benefits of project.
+ 0 Retail
+2 Office
+ 3 Office/ Service(50/50)
+ 3 Value Added(retail with significant
service component)
+4 Industrial
-2 Activity Not Contributing to Tax Base
+1 Company/Corporate Headquarters -
location of upper management where
decisions are made (add 1 pt to above)
+1 Target Business
+1 -+3 Elimination of Blight(add points to
above value)
ITotal Point Value *
7. SERVICE IMPACT
Adopted 5/12/97
Point
Value Type of Development
-4.0 Retail
- 3.5 Office/Warehouse Service
- 3.0 Hi Tech
-2.0 Office
8. FORM OF ASSISTANCE REQUESTED
(within TIF District 1, 2, and 3)
Point
Value
- 2 Up-Front
+ 5 Pay-As-You-Go
9. FORM OF ASSISTANCE REQUESTED
(within City but outside of TIF Districts)
Point
Value
- 2 One-Time Payment
+ 1 3 Annual Payments
+2 4 Annual Payments
+3 5 Annual Payments
Adopted 5/12/97
10. WORKSHEET SUMMARY
POINT VALUE
Public versus Private Staff Pt.Value
Number of Employees EDC Pt. Value
Public Investment per Employee
Pay Level of Positions Comments:
Real Estate/Property Taxes Generated
Significant Impact Multiplier
Service Impact
Form of TIF Assistance Required
Total Points
11. RATING FOR PROJECTS LOCATED WITHIN TIF DISTRICTS 1, 2,AND 3
Point Value Term of Assistance
0-10 0 Years
11 - 13 3 Years - or-Remaining life of TIF
District,whichever is less
14 - 16 5 Years -or- Remaining life of TIF
District,whichever is less
17 - 20 7 Years - or-Remaining life of TIF
District, whichever is less
21 and Over 10 Years -or-Remaining life of TIF
District,whichever is less
Adopted 5/12/97
12. RATING FOR PROJECTS IN DEVELOPMENT DISTRICT(OUTSIDE OF TIF DISTRICT)
(1)
Building Size:
Square Foot Cost of Project:
(Land& Building)
Project (2)Per S.F.
Cost Per S.F. Allowance
$20.00 - $30.00 $3.00
$30.01 - $40.00 $4.00
$40.01 - $50.00 $5.00
OVER$50.01 $6.00
Points (3) Percent of
Accumulated Assistance
11 - 13 30%
14 - 16 50%
17 - 20 70%
21 & OVER 100%
•
S.F. of Bldg: (1) $
X
S.F. Allowance (2) $
X
% of Assistance: (3)
Equals
Amount of Assistance: $
ECONOMIC DEVELOPMENT COMMISSION AGENDA
August 26, 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
Kahn Jopke (Staff)
Olsen Carroll (Staff)
Walther
3. APPROVE EDC MINUTES
July 22, 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 final
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: September 23, 1999
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\AGENDA99\AG EN0826.WPG
A
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
July 22, 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 7:40 a.m. by Chairperson Cindy Carlson.
2. ROLL CALL:
Members present: Cindy Carlson, Tom Field,Julie Olsen, Wendy Marty
Members absent: Sean Walther, Jerry Kahn, Rosemary Goff, EDA Liaison Lynn Thomason.
Staff present: Community Development Director Rick Jopke, Economic Development
41101
Coordinator Kevin Carroll
3. APPROVAL OF MINUTES:
Motion/Second: Field/Olsen to approve the minutes from June 22, 1999,with the understanding
that the list of those in attendance will be revised to reflect Community Development Director
Rick Jopke's attendance.
Motion Carried: 4 Ayes 0 Nays
4. SPECIAL BUSINESS
Economic Development Coordinator Carroll provided the EDC with an update regarding
DTED's decision to award Mounds View a grant in the amount of$333,333 to assist with
stormwater handling improvements in connection with the proposed Mermaid redevelopment
project. Carroll indicated that the project will not move forward unless or until the developers
are able to obtain ownership of certain adjoining parcels of property. If they are unable to
acquire the parcel on which the new [proposed] sedimentation pond was going to be located,
' alternative locations for the pond will have to be investigated. In addition, the City must match
the amount of the DTED grant, so if the City declines to provide the project with at least
$333,333 in tax increment [or other] financing, the City may be forced to decline acceptance of
the grant.
Carroll also advised the EDC that at its next meeting on 7-26-99, the EDA might be taking
action on a request or proposal to remove the Realife and Holiday parcels from TIF District#2.
}
Commissioner Walther,who anticipated that he would be out of town on the day of the [7-22-
. 99] EDC meeting, had contacted Carroll prior to that time to (among other things) convey his
belief that the EDC's opinion/advice should be sought by the EDA before removing any parcels
from any TIF District(s). Chair Carlson agreed, but indicated that the topic in question should
be deferred until after the completion of the EDC's work on the Economic Development section
of the Comprehensive Guide Plan.
5. EDC BUSINESS
A. Comprehensive Guide Plan -- Economic Development Section
The EDC members extensively discussed the most recent draft of the Economic Development
section of the Comprehensive Guide Plan.
1. In Section Two [Priorities], Commissioner Olsen requested that the word
"priorities" in the section title and in the introductory paragraph be replaced by
the word"objectives." The EDC voted 3-1 (Olsen dissenting) to leave the
section title as is, but to add the words "and objectives" after the word
"priorities" in the introductory paragraph. The EDC members also
unanimously agreed to delete the phrase "Beyond the preceding general
priorities and objectives" from the beginning of the first full paragraph that
follows the six bullet points.
2. In Section Three [Resources], Commissioner Olsen requested that the fifth
("Ongoing efforts to enhance...") and eleventh ("A coordinated approach...")
bullet points be deleted. The EDC voted 3-1 (Olsen dissenting) to leave them
in.
3. In Section Four [Challenges], Commissioner Olsen reiterated her belief that the
entire section should be eliminated, but that if it is to remain, she would at least
like to see the fifth bullet point ("In order to counter the possible
perception...") deleted. The EDC voted 3-1 (Olsen dissenting) to revise the
italicized portion to read, "In order to strengthen Mounds View's `identity'...", but to
leave the remainder of the paragraph intact.
The EDC members unanimously agreed to eliminate the 9th ("Although a
competitive...") and 10th("In light of the fact....") bullet points, although Chair
Carlson wanted the record to reflect that with respect to the latter, the EDC
recognizes the significance of the workforce issue and encourages City staff
members to continue working collaboratively with others to address the issue.
The EDC members unanimously agreed to revise the [formerly] 11`1i bullet
point to read: "In light of the limited selection of"tools"that are available to the City to
finance or promote economic development, monitor developments affecting economic
development and(where appropriate)make recommendations regarding
alternative, new or improved methods of providing advice, assistance or
encouragement.
• 4. It was agreed that Section Five [Financial Incentives]would be deleted, but that
the "essence" of the section would be incorporated into Section Three. In
1110 particular, it was agreed that the [previous] seventh and eight bullet points
would be combined, and that"sub-bullet" points would be created to address
the City's past use(s) of assistance, the City's past and future adherence to
written policies regarding the use of assistance, and the City's plan to regularly
review its related policies and programs.
The three EDC members who were still in attendance at thisoint in the discussion agreed that
p 8r
all of the EDC members should review the "final" draft of the ED Section when it is received,
and that Economic Development Coordinator Carroll should be contacted as much in advance
of the 8-26-99 EDC meeting as possible if anyone believes that the "final" draft is not yet ready
to be submitted to the EDA/City Council.
B. Discussion of TIF options
Inasmuch as a quorum no longer existed when the EDC got to this topic, it was agreed that
discussion of the topic would be deferred to the EDC's next meeting on August 26, 1999.
6. ADJOURNMENT
There being no further business before the Commission, this meeting of the Economic
• Development Commission adjourned at approximately 9:08 a.m.
Res ctfuilly Sub7 ed,
r
1
'vin Carroll
Economic Devel4r. Trent Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\MIN99\EDCMIN7.WPD
•
ti k
To: Economic Development Commission Members1110
From: Kevin Carroll, Economic Development Coordinator M[IIORAII DU 1 M 1
Subject Comprehensive Guide Plan update
(Economic Development Section)
Date: August 20, 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 7-22-99
meeting (which are included in the current packet).
I believe that this document is now in its "final" form. At a minimum, I believe it to
be consistent with the discussions that took place between and among the EDC
members who were present at the last meeting. I know that some of you were on
vacation or otherwise unavailable at that time, so if anyone believes that further
revisions are needed, PLEASE notify me of that fact as much in advance of the next
meeting as possible. It would be very useful if you could provide me with specifics
regarding your proposed changes at that time, so that I can (if appropriate) type up
• your suggestions/requests and then distribute them at the meeting. I'm sure that you
all share my desire to conclude this process, so that we can turn our attention to other
matters.
As always, plea e feel free to contact me by phone (612-717-4029) or by e-mail
(kevinc@r ' et.org) i f, yhave any questions or suggestions.
//// if
I'evin Carroll (6J2=717-402;9)
Economic Development Coordinator
N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\082699A.MEM
•
,
1999Mounds V
Comprehensive
Guide Plan
Update
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
110 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
City is prepared to assist with such efforts by working collaboratively with others
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
1111 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 and
objectives 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.
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
J y 1
3. RESOURCES TO SUPPORT ECONOMIC DEVELOPMENT
1110 "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, diverse local 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.
• Ongoing efforts to enhance the appearance of, and to better coordinate
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
improving the appearance of their properties.
• The potential availability of City assistance for appropriate development or
redevelopment projects.
• Tax increment financing is a type of assistance that has been provided
by the City in the past, and City-assisted funding for cosmetic and
operational improvements has been provided through the Business
Improvement Partnership Loan program.
• These types of City assistance have been,and will continue to be,
provided in a manner consistent with the City's written policies
regarding such assistance, and will generally be limited to situations in
which their use will enable the City to attract a new business, retain or
expand an existing business, provide new employment opportunities,
• 4
•
enhance the City's tax base, or otherwise improve the appearance or
110
vitality of the local business economy.
• The City will continually monitor and periodically evaluate its
programs and policies regarding development and redevelopment
assistance in order to make certain that they are helping the City meet
its economic development goals, priorities and objectives.
• Parcels of land that are suitable for development or redevelopment.
• An active local Chamber of Commerce.
• A coordinated approach to local planning and development issues, as
evidenced by the ongoing work of the I-35W Corridor Coalition.
• 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
5
r
e. adversely affect, in some other way, the ability of an existing
10 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,
• 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.).
• In cases involving actual or perceived neighborhood opposition to
commercial development of certain types in certain areas,
• survey nearby residents to determine their preferences and/or
• arrange neighborhood meetings or public hearings in connection with
110
6
( ' A
proposed commercial development(s).
i
• 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.
• In order to strengthen Mounds View's "identity, "
• 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
•
7
y "
organizations, and
. • serve as a clearinghouse for information about assistance (financial and
otherwise) that may be available from sources other than the City.
• In light of the limited selection of"tools" that are available to the City to
finance or promote economic development, monitor developments affecting
economic development and (where appropriate) make recommendations
regarding alternative, new or improved methods of providing advice,
assistance or encouragement.
• Due to the high cost of redeveloping property vs. developing property,
participate in seeking creative solutions to the financing challenges inherent in
potential redevelopment projects.
• C:\OFFICE\WPWIN\WPDOCS\COMPPLAN.ED8
•
8
wt
To: Economic Development Commission Members
From: Kevin Carroll, Economic Development Coordinator MEMORANDUM
Subject: City Council/EDA Request for Review of TIF Policies and
Procedures
Date: August 20, 1999
■� I
As you know, the agendas for the June and July EDC meetings included references to
a topic entitled "Discussion of TIF Options." At neither meeting did we have the time
to discuss the topic in question, in part because of the time that the EDC was
required to devote to the Economic Development Section of the Comprehensive
Guide Plan.
In the meantime, the Council/EDA has continued to address various TIF issues from
time to time. At the City Council work session on August 2"d, and at the EDA
meeting on August 9th, an issue involving the possible "decertification" of two parcels
(Realife Cooperative and Holiday Stationstore) in TIF District #2 was discussed.
Although there were clearly some differences of opinion between and among EDA
members regarding how to proceed, the majority of the EDA agreed that a decision
regarding the decertification or removal of any parcels should be deferred until all of
the City's TIF policies, programs and philosophies have been thoroughly reviewed and
then updated or revised (if or where required). The majority of the EDA also seemed
to believe that at least the initial TIF review should be conducted by the EDC.
As a result, the scope of the EDC's analysis will now extend beyond the three "TIF
options" that were referred to in previous EDC packets. The EDA has put few, if
any, limits on the scope of the EDC's TIF review and commentary. Accordingly, I
would suggest that the initial tasks for the EDC should include agreeing upon a
timeframe for its review, specifying the topics (and sub-topics, if any) that will be
considered, determining the order in which they will be addressed, and deciding upon
the general format of the EDC's eventual "report" to the EDA/Council. In short:
draw a roadmap for the journey, so that we will all know where we are going and
when we expect to get there!
■
110 I suspect that the majority of our time at the 8-26-99 meeting will be devoted to
some collective "brainstorming" regarding these preliminary matters, so please be
prepared to offer your comments and suggestions regarding these "process" issues. If
all goes well, we may be able to begin devoting our attention to more "substantive"
issues at the following meeting.
t
Ke n-Carroll (61(07-4029) /
Economic Development Coordinator
N:IDATAIGRO UPSIECONDEV\EDA-EDCIEDCISTAFF991082699B.M EM
•
■