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

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I I '1 I I I I I I I I I I I I I I I I Mr. Auger recommended that Ramsey acquaint itself with all the programs that the State and Metro Council are offering and to take advantage of the State bureaucrats and Metro Council Staff because they are there to see that these programs are working. Commissioner Cox dismissed himself at 8:12 a.m. Commissioner Fults stated that there should be a program to defer taxes on new developments, expansions and improvements. Mr. Auger stated that would fall under Enterprise Zoning, whidh his office has applied for, but in his opinion deferring taxes is only a short term solution and would eventually turn into a vicious cycle because cities don't have any other source of revenue other than taxes. Commissioner Schmidt noted that school districts are adimant to Tax Increment Financing because new development will most likely bring in more children to educate and the school district will not make any monetary gain for 10 years. Mr. Auger agreed with Commissioner Schmidt and stated that there are provisions in Tax Increment Financing for sharing the tax increments and this would also apply to housing projects. Chairman Greenberg inquired as to the procedure that must be followed in order to make Tax Increment Financing available in Ramsey. Mr. Auger replied that Council has to approve a Tax Increment Financing Plan and that plan should be consistent with the City's comprehensive plan. Council then calls for a public hearing and passes a resolution adopting the plan. The Tax Increment Plan does not require County approval but the County must be informed and invited to the public hearing. The County and State have no veto power over a City's Tax Increment Plan -- it is strictly a local enabling legislation. Mr. Auger further recommended that a Tax Increment Plan not be adopted until the City has a project that needs it. Mr. Schnelle stated that when a developer comes along with a project he doesn't want to wait for a lot of government red tape and suggested that we work to get Ramsey designated as a Tax Increment Financing District. Mr. Auger stated that Ramsey could prepare a project plan and designate all of it's industrial land as that project area and within that area create tax increment districts for specific lots or acreage. The only steps the City would be saving is setting up it's project area -- it is difficult to set up a Tax Increment Plan without having a specific project in mind. Commissioner Schmidt stated that it would seem appropriate not to wait for a specific project to begin educating the public -- that through public hearings the public should be made aware of Tax Increment Financing. We should lay the groundwork and attempt to designate Ramsey's industrial area as potential Tax Increment Financing zone. Motion by Commissioner Schmidt and seconded by Commissioner Fults that the Economic Development Commission requests the immediate formulation of an Economic Development Financial Policy to be considered by the Ramsey City Council. This policy should be prepared for Council consideration by City Staff working in concert with the Ramsey Economic Development Commission, The State of Minnesota Department of Energy and Economic Development and other September 14, 1983 Page 4 of 6