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HomeMy WebLinkAbout6.c. Minutes of January 20, 2004 Special Joint MeetingITEM 1 L� ROSEMOUNT CITY PROCEEDINGS SPECIAL JOINT MEETING JANUARY 20, 2004 Pursuant to due call and notice thereof, a Special Joint meeting of the Rosemount City Council, Port Authority, Planning Commission, and Downtown Redevelopment Committee was duly held on Tuesday, January 20, 2004, at 5:30 p.m. in the Council Chambers at City Hall, 2875 145th Street West, Rosemount, Minnesota. The purpose of the meeting was to further educate staff and city advisory commissions on the financial program of Tax Increment Financing (TIF). Finance Consultants Mark Ruff and Sid Inman from Ehlers and Associates presented a Power Point program titled, "Redevelopment in Downtown Rosemount: Implement the Vision and Plan." Mayor Bill Droste called the meeting to order and welcomed all participants. Council Members present were: Kevin Strayton, Mark DeBettignies, Mary Riley, and Kim Shoe - Corrigan. Port Authority Commissioners present were: City Council Members and Chair Mike Baxter, Cami Zimmer, and Jay Tentinger. Planning Commissioners present were: Jason Messner, Myron Napper, and Terry Zurn. Downtown Redevelopment Committee members were: Maureen Geraghty Bouchard, Richard Daniels, Leslie DeFries, and Chuck Terry. Resident Steve Terry attended. City Staff present were: City Administrator Jamie Verbrugge, Community Development Director Kim Lindquist, City Planner Rick Pearson, Assistant City Planner Jason Lindahl, and Finance Director Jeff May. Tax Increment Financing was started in the 1970's and has been modified many times. Rosemount's first TIF District was in. 1979 and expired in 2001. The complexities of this financing tool and how it interacts with Minnesota property tax laws has required consultants who are specialists. Also, developers who have experience with this process are a real asset to project goals. Once a TIF District is established by the local government, it can be audited by the State Auditor and after six months it can be challenged by a concerned business. This tool allows taxes in the established district to go to Dakota County to be distributed according to State law. The percentage is split (not equally) between the county, school district, city and Fiscal Disparity Pool (this is for low income suburban areas). There is no limit to the number of TIF Districts that can be established within ,a city. The purpose of this tool is to help development, or redevelopment, happen where it might not be able to otherwise. This is sometimes called the "but, for" test. It is beneficial if the development will provide needed jobs or services for the community. The taxes that are returned to the City have restrictive uses. The funds cannot be used for recreational purposes such as parks, health clubs, trails, or golf courses. The funds can be used for example for streetscapes, purchase of land, demolition of property, and infrastructure. Not all parcels within a District stay in that District if they are not acted on within the first three years. If a parcel is developed five years after the start of the district there would be limited financing available. Mark Ruff cautioned that the use of eminent domain is not encouraged to acquire land because of incurred expenses. A willing buyer who will negotiate is a better cost saving tool for time and money. Often a moral decision will need to be made rather than the most financially advisable. Ruff also advised that additional funding can often be procured from organizations such as Metropolitan Council or Dakota County Community Development Agency. TIF Districts are not always successful, patience and good planning are a must. Rosemount City Council Proceedings Joint Special Meeting January 20, 2004 Page 2 Downtown Redevelopment Committee Member Maureen Geraghty Bouchard reminded everyone that the community has been talking about changing the downtown area for twenty years and she would like this to move forward. Mayor Droste acknowledged that this would not be a simple project but encouraged a thorough planning process. Mayor Droste thanked everyone for their participation. There being no further business the meeting adjourned at 7:01 p.m. Respectfully submitted, City Clerk Linda Jentink Recording Secretary The City Council Agenda Packet is Clerk's File 2004 -03.