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issued more than 3 months prior to the establishment of the tax increment <br />district. <br /> <br />Mr. Ippel stated that Ramsey is ooming up short because we must subsidize the <br />County and School District because of the use of tax increnent financing by <br />other cities in the County. <br /> <br />Ms. Waelti stated that school districts are not presently hurt by tax <br />increment financing; money not going into the school district is reimbursed by <br />the State. In using tax increment financing, a city must make every effort to <br />see that the use will generate economic base or the County will be hurt. <br /> <br />Mr. Don Greenberg inquired as to the advantage to a developer to locate in a <br />city that had tax increment financing. <br /> <br />Ms. Waelti stated that the major advantage would be that the city with tax <br />increnent financing could assist the developer in getting his project off the <br />ground sooner as they have a program in place; Coon Rapids has tax increment <br />financing in place and can get a developer going in 6 weeks and it takes a <br />developer 12 months to get started in Minneapolis. <br /> <br />Mr. Deemer stated that tax increment financing could be used to extend <br />sewer and water from Ramsey's second sewer oonnection and the bond would be <br />retired faster without burdening the rest of the city. <br /> <br />Ms. Waelti agreed and added that new industrial spots would be created along <br />the line and they could be added to the tax increment district because they <br />located because of the sewer line and the bonds would be retired even more <br />rapidly. <br /> <br />Councilmember Schlueter inquired if the city captures the increase in tax <br />revenue along with the assessments to the parcel for the improvements. <br /> <br />Mr. Deemer stated that instead of assessing, the improvement is included in <br />the lot price; in affect, that assessment would not occur. <br /> <br />Ms. Waelti stated that two cities are currently working with a combination of <br />assessments and tax increment financing. Those cities are establishing an <br />escrow fund to reduce the cost of extending municipal services to low income <br />housing. <br /> <br />Mr. Dennis Donovan inquired as to what comes first -- establishing a tax <br />increment project area or waiting until the demand is there. <br /> <br />Ms. Waelti stated that getting the first district and project on line is <br />tough and cities should be agressive in putting those packages together; <br />nothing will happen if you wait and then react. <br /> <br />Mr. Gilbert Menkveld inquired if tax increment financing can be used for <br />residential devel o~ment. <br /> <br />Ms. Waelti replied that it can and the only requirement is that a certain <br />percentage of the housing has to be available for low and moderate income <br /> April 30, 1985 <br /> <br />Page 4 of 5 <br /> <br /> <br />