Agenda - Council - 03/27/1990 - Laserfiche WebLink

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CASE # TAX INCREMENT FINANCING By: Dave Hartley, City Administrator Background: Over the past two years the City of Ramsey has received requests for tax increment financing assistance from the developers of Windemere Woods and Cedar Hills. To this date, we have not proceeded with establishing a tax increment district because the involvement of the developer of Chestnut Hills is necessary to make the project financially feasible. As many of you may know, the Legislature is currently considering major modifications to tax increment financing which will significantly lessen the City of Ramsey's ability to use this tool to encourage developments such as these. In addition to the aforementioned development projects, I was contacted this morning by Mr. Don Greenberg who was inquiring about tax increment financing for the purpose of retaining and expanded the facilities of an existing Ramsey business. Such expansion would create 20 new jobs and commercial construction estimated at $2.5 million. Although I have not received the formal application for tax increment financing from Chestnut Hills or the Ramsey business interested in expansion and relocation, the City Council may wish to take an action which could make possible the use of tax increment financing for these projects prior to the change in statute. What is necessary is that a hearing be held and tax increment financing plans be certified by the County Auditor before April 30, 1990. In order to meet that deadline I must send notice to the County and the School District of a hearing and identify the fiscal and economic impacts of the proposed tax increment financing plans. It would be necessary to modify Development District No. 1 and add Tax Increment Financing District No. 5 which would include a single project of constructing sanitary sewer trunk at a cost of $600,000 -and- modify Tax Increment Financing District No. 2 to include a project of extending sanitary sewer trunk and/or lift station at a cost of $210,000. Recommendation: Although the City Council would be deviating from its policy of expending funds and pursuing tax increment projects without having the appropriate escrows in place, I believe it would be in the best interests of the economic development of the City of Ramsey to attempt to establish Tax Increment Financing District No. 5 and modify the aforementioned plans. I also believe it would be reasonable on the part of the City to require those interested in tax increment financing to immediately enter into preliminary develOPment agreements and post the required escrow for these projects. Council Action: Motion to authorize the City Administrator to make preparations for the establishment of Tax Increment Financing District No. 5, modification of Development District No. 1 and modification of Tax Increment Financing District No. 2 and to set a hearing date of Friday, April 27, 1990 at 5:00 p.m. as a primary date for a public hearing on the proposed TIF proposals and Tuesday, April 24, 1990 at 7:30 p.m. as an alternate date if waiver of notice is received from the School District and Anoka County.