09-10-1984 Council Packet - Laserfiche WebLink

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MINUTES OF THE REGULAR COUNCIL MEETING HELD AUGUST 27, 1984. PAGE 11 TAX INCREMENT FINANCING Arlin stated that the complications of tax increment financing are the limitations. Arlin stated that a City will not get in trouble if they follow the intent and letter of the law. Arlin stated that Orono seems to have a good project. Arlin stated that you first have to have a plan of action and cooperation from the owners in Navarre. Arlin stated that first you have to have a project area. Arlin stated that you have to have a defined area where public improvements will be made. Arlin stated that. you can take taxable values, in this case taxes from the new development, and use that money for paying for public improvements. Arlin stated that within that project area, tax increment financing, the project areas where the improvemet occurs, the tax increment district, is where the taxes are generated. Arlin stated that where most Cities got into trouble with tax increment financing and the big change that we made when we passed the law is that you Should keep the project area large and the tax increment district small. Arlin stated that if you have development occuring on one parcel, take that new development and leave the rest alone. Arlin stated that the rest of the area will follow. Arlin stated that the new development in Navarre will probably be of limited size. Arlin stated that the development that will occur in Orono probably is outside Navarre that the City is going to want to capture and use in the Navarre area. Arlin stated that another concept of tax increment financing is that tax increment districts did not have to be contiguous. Atli n stated that the City may want to identify an area in which development is going to incur in that new project area, and include Navarre in project area, and in those non-contiguous project areas, the City will identify parcels on which the Ci.ty's public assistance is going to create new development. Arlin stated that the City can take the tax increments generated from. a large development and use that to assist Navarre. Arlin states: that in order to be sure that the City has a structure and plan that works, the City should do its financial statements to make sure that the tax increment district will always support the development that is about to occur. Arlin stated that the thing that Loring Park did not do was to require development agreements. Arlin stated that if the City talks with someone, and they say they need a change in the road or whatever, and if the City will agree to do these things, that person will agree to add onto their building or put a new facade on their building.