HomeMy WebLinkAbout2E, TIF Policy Discussion 'It
EN HILLS
Request for Council Action
2E
i
Prepared By: Jill Hutmacher, Community
Development Director ; Council Meeting Date: August 20, 2012
TIF Policy Discussion
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
Review memo from Ehlers and the criteria analysis matrix and provide feedback to Staff.
Supporting Documents:
1. Memorandum dated August 20, 2012, from Jill Hutmacher, Community Development Director.
2. Attachment A—Ehlers TIF memo and Criteria Analysis Matrix.
,- RZEN�HILLS
MEMORANDUM
DATE: August 20, 2012
TO: Honorable Mayor and Councilmembers
Patrick Klaers, City Administrator
FROM: Jill Hutmacher, Community Development Director J
SUBJECT: Tax Increment Finance Policy
Background
On July 16, 2012, the City Council directed staff to enter into an agreement with Ehlers to
develop a tax increment finance (TIF) policy that will assist the City in determining how and
when to provide TIF assistance.
Stacie Kvilvang, Ehlers, has provided a memo and criteria analysis matrix (attached). Ms.
Kvilvang requests Council feedback on the assumptions and discussion topics listed in the
memo. Council discussion of the potential ranking criteria and their relative priorities (point
values) is also desired.
City of Arden Hills
City Council Work Session August 20, 2012
Page 1 of 1
Attachment
Ehlers TIF memo and
Criteria Analysis Matrix
August 20, 2012, City Council Work Session
Memo
To: Patrick Klaers
From: Stacie Kvilvang
Date: August 16, 2012
Subject: Tax Increment Policy
To begin the process of updating the City's TIF policy and application, we need to
determine priorities of the City Council on what projects they want to provide assistance to
and what criteria, if any, should be taken into consideration.
Basic assumptions that have been made that would be included in the policy are:
1. Developer has provided a development proforma that shows the gap (but for test) and
the gap has been verified by financial advisor
2. Development will conform to all city zoning, comprehensive plan and planning
requirements
3. All projects will meet design standards
4. Developer has past development/redevelopment projects of similar type/scope and
the financial ability to complete the project
5. Any TIF or abatement assistance is in the form of Pay-As-You-Go
6. Assistance will only be provided to projects that provide the highest and best use of
the property
7. In TIF districts, Fiscal Disparities will be paid within the TIF district (no impact on other
property owners)
8. All developers will pay applicable application fees and pay for fiscal and legal advisor
time
9. No assistance will be given for overpayment of land
10. Just because an applicant meets any and/or all criteria doesn't mean assistance will
be granted
Any of the above referenced basic assumptions can be changed, deleted and/or others
added.
www.ehlers-inc,com
Old —- - --- -
E H L E RS Minnesota phone 651-697-8500 3060 Centre Pointe Drive
` LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122
toil free 800-552-1171
Patrick Klaers
Tax Increment Policy
August 16, 2012
Page 2
In addition, there are other issues to consider and discuss as follows:
1. How much flexibility does the City want in a policy (i.e. do you want to have
definitive yes or no's)
2. Does the City Council want staff to have the flexibility to determine what projects
come before the City Council or do they want to see every request
3. What won't the City provide assistance for
4. Will the City ever waive fees (i.e. park dedication, building permits, etc.)
5. Should the amount of tax capacity captured in TI be written into a policy or just be
a benchmark in practice (informal policy)
6. Should the number of years of assistance be limited (less than statutory
maximum); and
7. What is the criteria that should be reviewed and/or weighted to determine if
assistance should be provided
I have attached a chart of criteria to consider for commercial (includes industrial projects)
and housing projects to be the starting point for discussion. I would request that the City
Council review prior to the meeting and have preliminary thoughts on the various aspects.
Please contact me at 651-697-8506 with any questions.