HomeMy WebLinkAbout1A, TIF LegislationEN HILLS
MEMORANDUM
DATE: September 14, 2009 Item LA
TO: Mayor & City Council
FROM: James Lehnhoff, Community Development Director
SUBJECT: Twin Cities Army Ammunition Plant (TCAAP) Property
Special Tax Increment Financing (TIF) Legislation
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 Twin Cities Army Ammunition Plant (TCAAP) property. 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 10 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.
• The authority to create a district under the special law expires on Dec. 31, 2019.
If the City wishes to retain this special legislation for future use, certain steps would need to be
taken or the ability to use the special TIF legislation will expire. The City Council, followed by
the School Board and County Board, would need to approve a resolution approving the special
TIF legislation. Once all three jurisdictions have approved the resolutions, the City would need
to file a certificate with the Secretary of State. This process would need to be completed before
the start of the next regular session. Since the legislature technically meets in two year sessions,
the next regular session does not start until January 2011. However, Mr. Bubul has suggested
that if the City wants to accept the potential use of the TIF legislation, the process should be
completed before the end of 2009 to avoid any confusion over the expiration date and to avoid
the possibility of the legislation being repealed during the 2010 session.
Approving the special TIF legislation is not an approval or implementation of the actual TIF
district. By approving the special TIF legislation, the City is simply retaining the ability to use
the special TIF legislation in the future if the City determines that it would be appropriate for a
particular project. There is no obligation to ever use the special TIF legislation.
City of Arden Hills
City Council Work Session for September 14, 2009
I lMetro-inetl ardenhills Admin l Council L4gendas & Packet Information 12009W9-14-09 TCAAP Worksession PPacket Information lIA 091409 - CC
Memo - TCAAP TIF Review. doc
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While this special legislation had been crafted around the mixed use development concept
proposed by RRLD, it could still be a powerful tool for a revised regional park/development
scenario. Obtaining special TIF legislation requires a significant amount of time and effort, and
regaining it in the future could be difficult. While the cost and time invested into this process
was born by RRLD, the City remains the benefactor of that effort. This special legislation could
still be helpful in achieving community goals, including advancing the cleanup process and
adding other community amenities. Any new land use scenario would require a critical review
before TIF is considered an option. The City has been clear in saying that no developer should
automatically expect TIF of any kind.
City of Arden Hills
City Council Work Session for September 14, 2009
IlMetro-inetlardenhillslAdminlCouncilUgendas & Packet Information12009W-14-09 TCAAP WorksessionlPacketInformation l]A 091409 -CC
Memo - TCAAP TIF Review. doc
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