Laserfiche WebLink
1 <br />To: Craig Waldron <br />Director of Community Development <br />Memorandum: Basis of reqgest for Tax Increment Assistance. <br />Why Fund MBC's Proposed Project? <br />Minneapolis Business College is requesting <br />that the City of <br />Roseville use a development tool, tax increment <br />assiconstance, which <br />is appropriately limited by law, <br />and <br />political considerations. We recognize our responsibility to <br />demonstrate that our proposal merits City Council approval, not <br />only because it meets legal requirements, but because it is good <br />public policy. <br />, <br />In 1985, the Minnesota Legislature directed the Office of the <br />tax increment <br />Legislative Auditor to investigate the uses of <br />Financing" <br />financing. "Tay cre ent <br />The subsequent report, <br />(Program Evaluation Division, Office of thelegislation Legislative Auditor, <br />Jan. 1986 ) described the authorizing idelines <br />for project approval. <br />The report placed final responsibility and authority for bond <br />the development <br />use with the city government within which <br />The Municipal Development District J�ct, as stated in the <br />occurs. mber of findings <br />report, requires that "the city must make Qu <br />development <br />of which the most important is that proposed <br />not be reasonably expected, in the opinion, <br />would the reasonably <br />solely through private investment within <br />foreseeable future." <br />In this instance, development of this site is .subject to two <br />t a <br />issues. First, can the land be developed as proposefina <br />the tax increment <br />reasonable level of return, without <br />improvements (ie. soil corrections)? Secondly, is Minneapolis <br />Business College and it's proposed development a desirable <br />development in terms of benefit to the city? <br />As we understand it, this proposed use of funds is in fact an <br />financing tool. it is also <br />intended use of the tax increment <br />understood that tax increment financing is intended to be used to <br />urp feu:ed tax-exempt <br />wo purposes: <br />e xempt <br />stimulate development for one of <br />they for - <br />activities; and/or to benefit c <br />profit venture. "Benefits to the community" include: 1)expansion <br />of the local economy, 2) an increase in the property tax base, <br />and (3) the production of new employment opportunities as stated <br />(vol. 21 ed. by Sylvan J. <br />in the <br />Feldstein and Frank J. Fabozzi, 1983). <br />i� <br />