Laserfiche WebLink
Mr. Greenberg referred to that area surrounding the railroad tracks and inquired <br />if tax increment financing could be used to improve the railroad; would railroads <br />be considered a public utility? <br /> <br />Mr. Nelson replied that the city cannot outright finance improvements to the <br />railway, but the city might be able to do a land write down for the potential <br />developer, thereby freeing some of his cash outlay with which he could use <br />to put in an improvement like a railroad spur. <br /> <br />Mr. Zimmerman inquired if the city can buy raw land and improve it with streets, <br />sewer and water and sell it back to the developer? <br /> <br />Mr. Nelson replied that tax increment can be used for land acquisition by <br />way of an outright purchase or condemnation. <br /> <br />Mr. Nelson also stated that tax incrementing allows the city to gain better <br />control of critical planning areas. <br /> <br />Mr. Lichter inquired as to limitations put on Industrial Revenue Bonds. <br /> <br />Mr. Nelson replied that a city can issue up to $10,000,000 in industrial <br />revenue bonds for industrial projects within the city. <br /> <br />Mr. Greenberg stated that if the City decides to go with tax increment <br />financing, Should the tax increment districts be set up right away? <br /> <br />Mr. Nelson replied that he would advise the City not to set up tax increment <br />districts right away; if you set it up and nothing happens, it evaporates. <br />The broader outside boundaries of a tax increment project can be set. <br />When setting up a tax increment district, the plans have to be submitted to <br />the County and the School Board. The County and School Board have a certain <br />amount of time to get back to the city with their comments; essentially, it <br />is a two month process, from the time you have an interested developer until <br />you set the tax increment district up and freez the assessed value. You <br />can't go in after a project is underway and make it a tax increment district. <br />Improvements that received building permits three months prior to setting <br />up the district go into frozen value rather than captured value. As soon <br />as the city gets an inkling of a business that wants to come in, that is the <br />time to act. <br /> <br />Mr. Nelson also stated that there is no minimum size to a tax increment <br />district. The tax increment project area should be broad enough to have <br />enough area to spend money on and narrow enough to Satisfy statutes. <br /> <br />Mr. Raatikka brought up the subject of tax increment housing districts. <br /> <br />Mr. Nelson stated that housing does not kick off a whole lot of increment <br />and they create more public costs; not a lot of tax increment is done on <br />single family dwellings. <br /> <br />ADJOURNMENT <br /> <br />Mayor Gamec adjourned the <br /> meeting at 9: 35~p~.~ <br /> <br />Respectfully submitted, <br />Sylvia Frolik ~--~-~ ~ ~/~h~lle <br />0o noil Secretary <br /> <br /> Attachment (1) C/~rch 1 <br /> Workshop Me e~ing <br /> Page 3 of 3 <br /> <br /> <br />