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REQUEST FOR COiTNCIL ACTION Date: 10/23/00 Item No.: F-8 Department ApprovaL Manager Reviewed Agenda Section � � Reports and Recommendations F M Description: Authorization to Prepare a Plan for Potential Termination of Selected Tax Increment Districts Background In 1982, the City of Roseville developed and entered into the planning and implementation of Tax Increment. The early plans were revised and ultimately made active in 1985. At that time, the plan called for major up-front investments on the behalf of developers for planned projects i.e. Centre Pointe, Rosedale Corporate Plaza, Berger Transfer, I-35/36 corner, etc. On a source of funds basis, the City issued $24.5 million of general obligation debt in 1985 to finance the up-front development. In 1995, $6.5 million of tax increment bonds were also issued to provide for the purchase of park land , park redevelopment and recreation improvements. Results The results of the tax increment program have been outstanding. As of this date, the estimated market value (E� growth in the City's tax increment Districts have been very significant (Nearly $200 Million). Thousands of jobs have been added to the city's economy and the citizens have had the enjoyment of improved public infrastructure. The infrastructure improvements included not only new streets and pollution clean-up but also the addition of parkland and the enhancement of older park facilities. Policy In recent years, the City Council has adjusted its policy to implement tax increment use on a pay-as- you-go basis thus avoiding the need for up-front investments by the City. In addition, State Statutes were changed in 1999, to remove park and recreation facilities from the list of approved uses for tax increment. Program Success The success of ineeting the original goals of the City's use of Tax Increment, now allows the Council to now move into a phase which provides for strong tax increment debt retirement and possible district termination. Staffis recommending, based on earlier Council work session discussions, that a proposed plan be developed for early district termination . The plan would generally follow the guidelines below: