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Why Twin Lakes needs TIF: Twin Lakes is plagued with contamination, blighted or obsolete structures and other costly barriers to development that the private sector cannot and will not bear. The trucking industry remains but does not add new property taxes or reinvest in buildings. The City has been working toward redevelopment of sites in Twin Lakes since 1988. The first phase if redevelopment (which removed a bus garage dump, deteriorating hotel and truck company) would not have occurred without the use of TIF to clean up over $3 million in contamination. Since that first phase of redevelopment, which ended in 1996, no other activity has occurred due to the high costs and conditions of the large remaining redevelopment parcels. T1F Can Help the Environment and the Economy: Cleanup of contamination and removal of aging, deteriorating first ring suburban properties enhances community livability, image, tax base and avoids a painful cycle of more serious deterioration, declining property values, crime and urban decay. The benefits of land recycling accrue to the state through higher commercial taxes and income taxes, and all of the local property taxing jurisdictions. Just as there are positive ripple effects created through reinvestment and redevelopment, there are more serious negative ripple effects created if the contamination and deferred maintenance of parcels remain. The Problem: Why Development Doesn't Pay in Brownfield's - In an effort to reform the property tax system a few sessions ago, the legislature lowered the tax rate on commercial/industrial property. While this was a positive change in general, the ability to generate revenues within Brownfield areas like Twin Lakes was greatly curtailed. Property tax reform had the effect of greatly increasing the financing gap for redevelopment projects such as Twin Lakes. Also, many state programs that might have mitigated this problem are under- funded or in jeopardy. Last session, the Governor vetoed funding for the Redevelopment Account and the Contamination Cleanup Grant Account (both DTED programs). Another State mandated fiscal policy is the regional tax sharing plan called fiscal disparities. Roseville pays fiscal disparities on 7