08-27-1984 Council Minutes - 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 pro;ect areas where the improvemet occurs , the tax incrementdistrict, is where the taxes are generated. Arli_n stated that where most Ci_ties got into trouble with tax increment f inancing 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 smail. Ar]_in 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 Grono 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 . Arlin stated that the City may want to identify an area in which development is going to occur 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 City' s public assistance is going to create new development. Arlin stated that the City can take the taxincrements generatedfrom a large development and use that to assist Navarr_e. Arlin stated that in oraer 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 rea,uire 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 acid onto their building or put a new facade on their building.