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MEMORANDUM <br />To:Saint Anthony Village City Council <br />From:Stephen Grittman, City Planner <br />Date:April 28, 2026 <br />Request: Housing Topics (TIF Policy) <br />BACKGROUND <br />The City Council adopted three specific tasks as a part of its Housing Policy discussions during the annual <br />goal-setting process earlier this year. These were: <br />Consideration of codes related to allowing Accessory Dwelling Units (ADUs). <br />Consideration of policies related to the use of Tax Increment Financing to assist housing <br />projects. <br />Consideration of the study of “tear-down” ordinances as an aspect of housing affordability and <br />other neighborhood livability impacts. <br />At its work session on April 14, the Council discussed both the ADU and tear-down topics. The TIF policy <br />was left for the upcoming April 28 work session. The material provided for the prior work session is <br />included in this packet. <br />Tax Increment Financing Policy <br />Tax Increment Financing is one of the most common financial tools the City can use to assist private <br />development. In the past, the City’s use of TIF for private projects has been generally limited to <br />overcome extraordinary costs that sets a project on a more leveled market position. Otherwise, TIF is <br />often used to offset City costs necessary to accommodate private development (rather than provide <br />direct assistance to the project itself). This discussion is intended to identify policies that would apply <br />when TIF assistance is made by private development. <br />Attached is an example of the City of Minnetonka’s Affordable Housing TIF Policy, summarized by <br />Google’s AI. It notes the parameters Minnetonka uses for housing project eligibility for TIF assistance, <br />and further notes a fund that it uses from pooled excess TIF dollars collected from other projects. <br />RECOMMENDATION <br />No recommendation is given related to Worksession discussion. Staff seeks consensus direction as to <br />further research or Council preference as to follow-up code development. <br />ATTACHMENTS <br />Minnetonka Housing TIF Policy Summary <br />9