08-27-1984 Council Packet - Laserfiche WebLink

Home Browse Search

INTRODUCTION Throughout most communities in Minnesota, as a result of the decreasing availability of low cost, long- term financing, the need for redeveloping blighted and deteriorating urban areas, for developing low and moderate income housing, and for stimulating eco- nomic growth have become needs that are often pur- sued, but are not often met. Therefore, local governments should become aware of, and encourage the development of, innova- tive alternatives to alleviate or reduce the impact of today's high cost, long-term financing. Tax increment financing is one such effective alternative. It can pro- vide the private sector with the short-term incentives and long-term financing that can stimulate and encourage the needed development and redevelop- ment of a community. In many cases, tax increment financing can make the difference between a project which is economically feasible, and one which remains a concept. The recently enacted Minnesota Tax Increment Financing Act, Chapter 273 of the Minnesota Stat- utes, (the "Act") provides an opportunity for local governments to improve the economic climate of their communities on their own initiative, and without the usual red tape and long delays. This report sets forth, among other things: a description of the governmental agencies which have the statutory authorization to utilize tax increment financing; a description of the projects which re.9y be financed with tax increments; the requirements of a tax increment financing plan; the procedures involved in implementing such a plan; and the advisor, and underwriting services offered by Miller & Schroeder Municipals, Inc.