Agenda - Council - 09/27/1983 - Laserfiche WebLink

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I i I NOTE CHARTER COMMISSION AND AIRPORT CC~94ISSION MEETING MINUTES The Economic Development Commission noted the following: 1. Regular Charter Commission Meeting minutes dated August 11, 1983. 2. Regular Charter Commission Meeting minutes dated August 25, 1983. I I I I I I I I 3. Regular Airport Commission Meeting minutes dated August 30, 1983. Mr~.~chnelle commented that the Council appointed two more members to the Airport Commission -- Dick Sieber of the Charter Commission and Jeanne Moen of City Staff. Mr. Schnelle further commented that he doesn't feel it is good policy for a City employee to serve on a commission but he also knows that Ms. Moen will do an outstanding job. Cu~missioner Cox stated that a commission should consist of different factions and he finds it very interesting that Dennis Donovan has been appointed to the Airport Commission. Commissioner Cox then distributed the following informational material to Commission members: An article put out by the Independent Business Association of Minnesota. Commissioner Cox stated that this organization started about one year ago and they are making legislators accountable for their actions. Commissioner Cox noted that the centerfold of this article notes how the legislators are voting in areas that affect small businesses. 2. Pamphlet put out by Small Business Development Center entitled "Minnesota Business and Jobs - 1978-1982". COMMISSION BUSINESS I I I Case %1: Tax Increment Financing: Mr. Schnelle introduced Mr. Mike Auger from the Minnesota Department of Energy and Economic Development. Mr. Auger stated that his job is to provide technical assistance to communities regarding different grant programs available and Tax Increment Financing is just one of those programs. Mr. Auger stated that every community is interested in economic development; additional tax base, jobs and the providing of services to the citizens all require additional property tax base. Tax Increment Financing is a tool that Legislature set up in 1969 and there are no State or Federal grants involved -- it is simply a local enabling program. Tax Increment Financing is about'.using property taxes to pay for some of the City costs involved in getting a new project under way. As an example: The city acquires a parcel of land designated for redevelopment which is currently valued at $8000 and paying $200/year property tax. The city incurs another $2000'in Wrecking co,ts to clear the~land and lega fees. The city now has a total investment of $10,000 and sells the land for $2000 (bare land market value). The city shows a loss of $8000. The new owner of the property constructs a business with a market value of $40,000, which is 5 fold of the previous market value, and the property taxes should increase proportionately -- $1000/year. Tax Increment Financing says that the EDC/September 14, 1983 Page 2 of 6