CCP 12-15-1997 - Laserfiche WebLink

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D~) A FT . ~ --I 'i!',. . ARDEN HILLS TRUUHN- TAXATION - DECEMBER 4. 1997 6 Mr. Fritsinger noted the size of the bond issuance proposed to be undertaken for the Gateway I -. development and the reimbursement to the City was b~ed on very conservative assumptions. The majority of the cost is covered. The items not identified, such as Staff time and the acquisition of the Kem Milling site, are shown in the General and other funds. Also, a portion is to be paid by the developer. I Mr. Aiken pointed out there is a history ofTIF financing where the property is not returned to regular taxing but, rather, it is re-circulated. Mayor Probst noted Arden Hills has always been I very conservative and, in its history, this is only the second project where TIF has been used. The Staff has been very rigorous to make sure TIF has been used properly. He explained there I are limited funds and once those are repaid, the funds coming in will go to the General Fund or regular taxing revenues made available to all jurisdictions. Councilmember Malone offered a brief explanation ofTIF. When there is a portion of land I which is declared by a government body as a District available for TIF funds, a developer can request assistance by the City to develop that land. The City then spends the money to develop . the land and retains 100% of the tax revenues until that investment for development is paid back. In order to receive the ability to do this, the City has to pass a test to prove the necessity for the District. Also, developers have played city against city to obtain this subsidy. I COUNCIL/ADMINISTRATOR COMMENTS Mayor Probst and the Council thanked all those in attendance. eI AD.JOURN I MOTION: Councilmember Malone moved and Councilmember Hicks seconded a motion to adjoum the meeting at 8:50 p.m. The motion carried unanimously (4-0). I I Dennis Probst Brian Fritsinger I Mayor City Administrator I I I .. I