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I <br /> I <br />! <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Mr. Nelson e~lained that at the time of tax incrementing, the land value is <br />frozen &~' th~ county, School Board and General Fund receive their fair share <br />of monies ~a$~d on the frozen value. Property value does increase as it is <br />developed and~i the tax monies received above and beyond that frozen value are <br />applied tOwaxes paying off the tax increment bond. That way, the developer <br />is not taxed, for special assessments, he only pays property tax. Mr. Nelson <br />further ¢ ~m~ehted that it could take 2-3 years before the property is <br />develope~ iandl on the tax roles and money coming into the City. <br /> <br />Mr. Schne~le inquired if insurance could be obtained to guarantee the payment <br />of the first ,~wo years of tax increment preminums. <br /> <br />Mr. Nelson re~lied that insurance can be obtained, but is it worth paying <br />insurance ~ premiums to get a lower interest rate? <br /> <br />Mr. Goodrich~inquired if Ramsey is being taken advantage of by surrounding <br />communiti~s ~hat offer tax increment financing. <br /> <br />Mr. Nelson ~splied that theoretically, new ~mprovements would not have been <br />but for the .~act that the city offered tax increment financing. But in <br />practical·rmality, every new industrial park requires more police and fire <br />services;~ these are costs that are spread out on a county wide basis. <br /> <br />Mayor Gamete inquired if existing businesses can be included within the tax <br />incremen~ project boundaries. <br /> <br />Mr. Nelson replied that including existing businesses in the tax increment <br />district ~doe$ not increase the city's tax increment at all unless that <br />business iplans to expand and the additional taxes resulting from that <br />expansion cab be utilized in the tax increment project area. <br /> <br />At one point during the meeting Mr. Nelson stated that tax increment financing <br />for redevelopment purposes would be very difficult for Ramsey to obtain <br />considering ~here is so much raw land available for development. <br /> <br />Mr. Dee~er s~ated that he feels redevelopment would apply in Ramsey since <br />the enti~e South area is bordered by underutilized railroad tracks. <br /> <br />Mr. NelsOn agreed that this area should be given serious consideration for <br />redevelopment. <br /> <br />Mr. Ne~son Stated that it is not necessary to have a project on-line before <br />issuin~ tax!increment bonds, but it would be prudent. If a city were to <br />set up~a~taX increment financing district on the hope that someone will <br />take a~Vantage of it, the city can issue GO bonds for that financing <br />district. ~Xf nothing happens in 3 years, that district evaporates and <br />the city is~stuck with the GO bonds. <br /> <br />Mr. Go~dric~ inquired if the City has to do anything specific for the business <br />that comes in to create a tax increment district. <br /> <br />Mr. Nelson replied that nothing specific has to be done for the business, but <br />the city might want to provide some kind of enticement to get him in there. <br />You don~t he, ye any increment until you have somebondy going in and you don't <br />have s~ebOdy going in until you can tell him what you can give him. <br /> <br />C/March 14, 1984 <br /> ~o~kshop.Meeting <br /> a ePa~ 22 of 3 <br /> <br /> <br />