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

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I i I city can save up those tax increments ($800/year) for the number of years required to cover the loss -- 10 years ($800 x 10 years ~ $8000). These tax increments go to the city and meanwhile, during that 10 year period, the city, county and school d/strict still get their usual portion of the original tax on the property -- $200. The county and school district don't gain anything until the city's debt is paid off, and when that happens, the entire property goes on the tax rolls. I I Mr. Auger stated that Tax Increment Financing can be used in the following areas: 1. Housing projects. 2. Slum elimination. 3. Economic development projects. I I I Mr. Auger stated that redevelopment projects can stretch out to 25 years and economic development projects can only go up to 10 years. Tax Increment Financing can also be used for public accesses and right-of-way to make land accessible for development. Mr. Auger stated that there are other kinds of tools Ramsey should research -- State business loan programs, Energy and Economic Development Authority (board of individuals that approve business loans that the State Department of Energy and Economic Development is going to be making). He stated that there is a lot of money and several new programs gearing up in State government. Mr. Auger noted that it is EDC's responsibility to insure that there will be more development in the City and in order to do that the City is going to have to provide some kind of enticement. Cities are paying more attention to economic development and the methods that can be used to get it going within the community. I I I I Mr. Auger commented that he attended a workshop on economic development. One of the speakers was from New Haven, Connecticut and his main thesis was 'don't chase smoke stacks' -- don't spend all of your time and energy getting new businesses into the area, take care of the businesses you already have so they don't move out of the city. Commissioner Cox stated that he really appreciates that comment and attitude, and he wishes our State legislators would get the message. Commissioner Fults stated that people like to locate their businesses where people are doing well and are happy and that is not the situation in Ramsey, the atmosphere in this area is 'down' Mr. Auger stated that some cities hire professionals in the area of economic development and the first task they accomplish is finding out what will make the current businesses in the area more satisfied. Economic development is a long term program -- it doesn't happen overnight. Commissioner Cox stated that Ramsey is trying to see that there is a tax base to keep the community alive and the people, are forming coalitions and charters trying to prevent tax base from coming in. Mr. Auger commented that cities are viewed as regulators by businesses and in order to stimulate business, the cities have to bust out of that mold. EDC/Septemherl-4, 1983 Page 3 of 6