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ARDEN HILLS CITY COUNCIL—November 9, 2009 4 4. Consent Calendar MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 5. PULLED CONSENT ITEMS A. Motion to Approve Resolution 2009-030; A Resolution Accepting the 2009 Minnesota Laws, Ch. 88, Article 5, Section 16 Relating to a Tax Increment Financing District in the City of Arden Hills Community Development Director James Lehnhoff stated at the conclusion of the 2009 Minnesota Legislative session, the Legislature passed and the Governor approved the City's request for special Tax Increment Financing (TIF) legislation for the TCAAP property. In order to have the option of using this special TIF legislation at some point in the future, the City, along with the School Board and County Board, must approve the special legislation. Approving the special TIF legislation is not an approval or implementation of the actual TIF district and does not guarantee that the City will choose to apply the special TIF legislation. Councilmember Holden asked how this was different from regular TIF provisions. Community Development Director Lehnhoff stated the approved legislation provides the following flexibility from the standard TIF limitations: it is deemed to be a redevelopment district without meeting the blight test, the five year rule is extended to ten years, the duration limit of the district is increased from 25 years to 30 years, the City may elect to delay receipt of the first increment which starts the duration running by up to six years, and the authority to create a district under special law expires on December 31, 2019. MOTION: Mayor Harpstead moved and Councilmember Grant seconded a motion to approve Resolution 2009-030 Accepting the 2009 Minnesota Laws, Ch. 88, Article 5, Section 16 Relating to a Tax Increment Financing District in the City of Arden Hills. - Councilmember Holden stated that she would not support this motion. She stated that the City has ample flexibility with the generally accepted TIF provisions and she does not want to extend a TIF district out thirty years. Councilmember Grant stated that the City is not required to implement the TIF legislation to thirty years but it does make sense for the City have the options available. Mayor Harpstead stated that he would be in favor of this motion. This particular parcel is not generating any current tax so at the time it gets transferred to the public sector it will be revalued and begin to generate tax. The opportunity for the City to allow some improvement on the property in accumulation of additional value before the City begins taking the first increment really allows the City to begin accumulating funds in order to cover some of the costs identified. It is nice to be able to shift this into the future from a start date in order to make sure that there are