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PROCEEDINGS OF CITY COUNCIL <br /> CITY OF RAMSEY <br /> ANOKA COUNTY <br /> STATE OF MINNESOTA <br /> <br />The Ramsey City Council conducted a special meeting on Tuesday, August 11, <br />1987 at the Ramsey Municipal Center, 15153 Nowthen Blvd. N.W., Ramsey, <br />Minnesota. <br /> <br />Members Present: <br /> <br />Acting Mayor Arnie Cox <br />Councilmember A1 Sorteberg <br />Councilmember A1 Pearson <br />Councilmember Steve DeLuca <br /> <br />Also Present: <br /> <br />City Administrator David Hartley <br />City Attorney William Goodrich <br />City Engineer Peter Raatikka (arrived at 9:00) <br /> <br />CALL TO ORDER <br /> <br />Acting Mayor Cox called the special Council meeting to order at 7:12 p.m. <br />and led in the Pledge of Allegiance to the Flag. <br /> <br />COUNCIL BUSINESS <br /> <br />Case #1: Di~.~uss Tax Increment Financing Policy: <br /> <br />Mr. Ron Batty, Ramsey's Bond Counsel, was present to discuss a proposed <br />policy that would serve as a guideline for evaluating requests for City <br />participation in projects using tax increment financing. Mr. Batty <br />emphasized that the policy would be used as a guideline; it is not an <br />absolute and may require amending from time to time. This document would <br />establish that the greatest percentage of tax increment financing would be <br />used to encourage new and retaining commercial/industrial development, <br />then urban residential development and the remainder for pure public <br />improvements like sewer and water, municipal well, water tower, streets and <br />even a bridge if it is within a tax increment development district; <br />creation of development districts are restricted to within the city limits. <br />A city should be unwilling to use tax increment funds for a project unless <br />it is convinced a development would not occur without tax increment <br />financing. The short term benefit to tax increment participation is that <br />the city gets a development it would not have had before and that <br />development generates increment to be used for other public improvements. <br />The long range benefit is upon expiration of the tax increment district <br />when the development comes on line and the added tax revenue is distributed <br />among the city, county and school district. Since the 1986 enactment of a <br />law regarding tax increment financing, not all projects qualify for tax <br />exempt bonding. The primary test on whether an issue is taxable or not is <br />in two parts: bad purpose (private use) and security for repayment; you <br />don't have a taxable issue if you don't fail these two tests. City's can <br />still require a development agreement to assure a certain amount of <br />City Council/August 11, 1987 <br /> <br />Page 3 of i16 <br /> <br /> <br />