09/17/13 Special - Laserfiche WebLink

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HRA Executive Director Ulrich stated the boundaries were based on a geographic description and included the original Ramsey Towne Center as well as intersections so they could be included within expenditures. Commissioner Strommen asked what the expectations were at the time the HRA approved the F &C deal. She noted it had been expected there would be tax increment to do the Note and asked what were the expectations. Ms. Kvilvang explained the tax increment was based on the parcel's estimated base value being zero at the time the TIF District was created so projections estimated $3 million for the District. She noted there was not the expectation that there would be such a large decline in property values from 2011 to 2012 to 2013. Commissioner Riley asked why the HRA would not consider the option of resetting values. Ms. Kvilvang stated she does not see a downside to resetting values since the goal is to assure the HRA is re -paid for its investment. Chairperson Backous stated he thought the value of the Allina Clinic had been reset. Ms. Kvilvang stated the HRA did add the Allina Clinic and the VA Clinic to reset the land value so that increment . could be captured. Chairperson Backous supported amending the 4 Year Rule, resetting values, and perhaps putting The Residences in a separate TIF District. He stated he would like to change the election to have the fiscal disparities paid inside the District. Commissioner Tossey agreed and stated he had objected to paying fiscal disparities outside the District because then the rest of Ramsey subsidizes the TIF District. He stated he would support isolating F &C in its own District only if there is decertification in TIF District 14. Commissioner Tossey stated the HRA needs to take action and decide how this will be handled. Chairperson Backous stated the option of removing some parcels from the District is another option and there is a strong support from most HRA members that it is not appropriate for housing and they should be taken from the District. Chairperson Backous felt the District was too large, noting it needs $23 million in value before the TIF "clock" starts and then 23 years before the City realizes any benefit. Commissioner Tossey pointed out that no current member of the HRA supported the F &C development in the way it was structured and he would not support such a development in the future. Commissioner Tossey stated he supports isolating that project in its own District. Commissioner Strommen stated she agrees the options presented by Ehlers and Associates are good but she would like to also refine the end uses and schedule in terms of build out. She stated Housing and Redevelopment Authority / September 17, 2013 Page 4 of 6