Agenda - Council Work Session - 06/01/2010

Home

~ CITY COUNCIL WORK SESSION Topic Report: Legislative Update regarding TIF Authority for the Cor By: Kurtis G. Ulrich, City Administrator . j 1 l ""/ If I..~ ~sEY Background: The City received approval for its tax increment financing (TIF) from the State legislature and the bill was presented to the Governor for signature on May 18. The Governor has until May 30 to sign the legislation. He has not done so yet, but is expected to sign it by all reports. Attached is the language of the City's TIF legislation. It allows the City to create a TIF District under the redevelopment statute without meeting the qualifying criteria, such as blight. It also provides for use of TIF for the construction of the Northstar Transit Station and related infrastructure of structured parking, a pedestrian overpass, and roadway improvements, in addition to the normal expenditures allowed under statute. Redevelopment districts may run for up to 25 years. Copies of the TIF statutes are also attached outlining the process for establishing the district. MS 469.175 (see attached) outlines the process of establishing a Tax Increment financing plan. Staff is recommending the use of a financial consultant to assist in the preparation of the plan. With Council concurrence, an RFP process would be commenced immediately. The passage of the TIF legislation is an excellent opportunity for the City to capture the taxes from the development of the Cor area to fund necessary infrastructure improvements. Consequently, it is recommended that the City proceed with the TIF district analysis and the establishment of the district in a timely fashion. Recommended Action: Consensus approval to begin process to establish the Cor TIF district and to solicit proposals from consultant firms to prepare the Tax Increment Financing Plan. Note, approval of the consultant contract would come back for Council/HRA approval. Reviewed by: City Administrator: /t'&tQ I; CCWS: 06/01/10