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keeping TIF District #14 in place allows maximum flexibility for the City to pay off current and <br />future obligations. <br />Councilmember McGlone clarified that TIF did not fund the loan to Flaherty & Collins but was <br />used to back the loan. At this point, no TIF funds have been used. <br />City Administrator Ulrich agreed that TIF is a backing to that loan. <br />Councilmember Wise arrived at 5:18 p.m. <br />Councilmember Tossey stated he made the motion at the last meeting to remove all <br />unencumbered properties from this TIF District because he believed that TIF plays favorites and <br />is the impetus for government- pushed development, as shown when he tried to lower the HRA <br />levy by one -half. Councilmember Tossey suggested TIF is the "feeding tube" for that monster <br />and decertification of this TIF District, whenever it occurs, is the right thing to do. He felt <br />Ramsey should compete against other municipalities with its tax rate and not through the use of <br />TIF. Councilmember Tossey stated cities are not using TIF as the Legislature intended so he <br />thinks TIF Districts have hurt the taxpayer. <br />City Administrator Ulrich stated TIF has a subsidy side and a public improvement side. He <br />pointed out that in Ramsey all TIF, except for $5 million, is towards the public side. The <br />Council has the choice to use TIF for public improvements or private development and has <br />limited private subsidies. <br />Finance Director Lund explained the City has a JPA with Anoka County to construct Armstrong <br />Boulevard with funding backed by TIF District 14. That is the only funding mechanism for that <br />project or else the City would have to pass a bond or increase the levy. That is an outstanding <br />issue. Finance Director Lund listed the encumbrances related to TIF District 14. <br />Councilmember Strommen stated this is good discussion and she appreciates Councilmember <br />Tossey bringing it up. She indicated she is supportive of having staff gather financial <br />information but believed TIF use is nested within the central issue that the Council has to address <br />in January, the role of the City in The COR, the nature of that role, and the tools the City uses. <br />Councilmember Strommen felt now is the time to launch an information gathering process, but <br />not to make a decision on TIF use. <br />Finance Director Lund answered questions of the Council related to funding for road projects <br />and the AUAR JPA. <br />Councilmember Tossey asked whether any funding for the overpass scenario used TIF backing. <br />Finance Director Lund explained that when Anoka County did the JPA, Armstrong was part of <br />the funding mechanism and that is why Anoka County placed a $4 million bond for their share of <br />the project cost. <br />City Council Work Session / November 13, 2012 <br />Page 2 of 10 <br />