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I <br />I <br />I <br />I <br />I <br />I <br /> <br />league of <br /> <br /> "d .- i~.f..~,''I '"; <br />minnesota cities <br /> <br />September Itt, 195! <br /> <br />TO: Development Strategies Committee <br /> <br />FROM: Peggy Flicker, Legislative Counsel <br /> <br />5U[SUECT: Interrelationship between fiscal disparities <br /> and tax increment financing <br /> <br />At the last meeting, Barry Evans raised some questions relating to the interaction of <br />fiscal disparities and tax increment financing. <br /> <br />Materials are attached which explain in some detail the way in which fiscal disparities <br />contributions are calculated with regard to TIF districts. <br /> <br />I believe Mr. Evans' main concern was whether the new development occurring in a <br />TIF district would be "counted" as commercial-industrial growth for fiscal disparities <br />purposes, even though the increased assessed value ("captured assessed value") results <br />in tax increments for bond repayment and not additional general city tax revenues. <br /> <br />The statute and annotations indicate that net growth for fiscal disparities contribution <br />purposes does include captured assessed value commercial industrial growth in tax <br />increment districts. <br /> <br />PF:glb <br /> <br />hanover building. 480 cedar street, saint paul. minnesota 55101 (612) 222-2861 <br /> <br /> <br />