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CASE <br /> <br />Tax Generation Comparison Between Commercial / Industrial and Residential Property <br />By: James E. Norman, City Administrator <br /> Scan Sullivan, TIF Specialist <br /> <br />Background: <br /> <br />The EDA meeting held on November 14, 2001 had discussion in relation to the tax generated <br />by commercial and industrial properties. The City Administrator commented on the <br />relationship between the tax dollars generated by both commercial and industrial property. It <br />was stated that commercial property generated less than double what industrial property <br />generated. Questions were then raised by the EDA in regard to a comparison between <br />residential, commercial and industrial. Staff has put together some information that illustrates <br />the estimated tax generation relationship between commercial, industrial and residential <br />properties. Attached are both a Market Value analysis and a Development Type analysis in <br />relation to the tax generation for the City of Ramsey. The analysis is based on the 2002 tax <br />laws and takes into account the proposed tax rates for the City of Ramsey and other taxing <br />jurisdictions within the county. It should be noted that the analysis does not take into account <br />Fiscal Disparities. The Fiscal Disparities number varies greatly from year to year and with TIF, <br />the numbers vary from one project to another. <br /> <br />Summary: <br /> <br />The Market Value analysis shows an interesting relationship between C/I and Residential <br />properties. The tax generation for the City of Ramsey is not much different between Cfi and <br />Residential properties for smaller values. However, for larger market values the C/I property <br />generates a significantly higher amount of taxes for the City. The Development Type analysis <br />shows a much different picture. The development type of 2.5 acre parcels greatly influences the <br />amount of taxes generated for the City of Ramsey. It is interesting to note the comparison <br />between Industrial and Medium Residential development types. The values are very similar <br />despite a very different development strategy. Comparing High Residential and the C/I <br />Average also shows an almost even tax generation. Development strategies play a large role in <br />the amount of taxes that are generated for the City. <br /> <br />EDA Action: <br /> <br />None. <br /> <br />Reviewed Checklist: <br /> <br /> ommunity Development Assistant <br /> Specialist <br />City Administrator <br /> <br />EDA: 12.10.01 <br /> <br /> <br />