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Department Approval: Description: Background REQUEST FOR COUNCIL ACTION Manager Reviewed ✓ � // n %I / / tYA of Selected Tax Increment Districts Date:12/17/O1 Item No.: F-1 Agenda Section Reports and Recommendations In 1982, the City of Roseville developed and entered into the planning and implementation of Tax Increment Financing (TIF). 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 offt�nd5 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 parkland, park redevelopment and recreation improvements. Results The results of the tax increment program have been outstanding. As of this date, the estimated market value (EMV) 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 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 severely restrict the use of tax increment. Fi°ogram Success The success of ineeting the original goals of the City's use of tax increment financing, allows the Council to now move into a phase, which provides for strong tax increment debt retirement and district termination. The most recent actions by the Council to defease the remaining outstanding tax increment general obligation debt fulfills the intented purposes. Should there be a need to implement tax increment financing in the future, the City will be in a position to draft and propose' the creation new districts, which meet the current statutory requirements.