Agenda - Council - 10/13/1981 - Laserfiche WebLink

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M~ch 4, 1980 Mr. Ja~,,es S. Holmes Holmes & Graven A~czn. eys at Law ~.~lO [DS Center ,'Jir. necpo, i~, Minnesota 55402 Dear Mr. Holmes: T~,.e pur-.3, c. se of this letter is to ver;~y oar telephone conversation of la~ week regarding the fiscal disparity portion of the tax increment tec~'onica! amendments (copy attached). SubdiviMon 3, clause (a) provides that where the governing body doe~' nog re. quire a fiscal disparity concrfbu~ica to be made from the incremen: district, the increment district ~thority is pecmitted to retain 100% of the assessed vclue increment unless it has designated to share a portion of it with the local ta*~,ng districts. Subdivi~on cl~_~e (b) provides that where the go,Tern.~g bc~+y requires a fiscal dispcri:y conW//~ut/on to be made from the increment district, the ccn~rf~!oq amount is based ~n the fiscal dispari,~y ratio for the en~ goverhmental ~it. Under both cl~_~ses, the total con~'ibution from the governmental unit is the same. Under clmise (a) the entire conlri'm_,ticn.is from c~ttsid~ of the increment district. Under clause lb) a pw:ion of the contribution is from the increment district. If yixi have ~ questions regardi~,g this letter, please contact me. Very :ru!y yoar~, Jerome F. $flkey, A~istant Director tocd Goverr~'nent Aids and .~nalysis Division Under p~r~. (a), the con.*riD~tic~ ratio of the municipality is not cpplied to commerciat-!n~-4strial property i~ide a tax increment dis~ici, ~t the con~i~tUon these p~p~!es wo~d othe~ise m~e w~Id be spread ~ commercial-in~rial prope~es ~de the dis~ict. ~eref ore, ~e total amv~ of cap,ed a~e~ed value ~ ~'a~able f~ ta~ incremen~ debt reti~m~. How~'er, if the govem~g b~ of the m~icipali~ wi~he~ that the c~i~gon be made ~ commercial- ink,rid p~p~ies i~de t~ c'is~ict, it m~ elect to do ~ ~der p~ lb). Th~ elecffon, once made, c~ot be ch~ged. P~ (a) and (b) ~e iden:icd for non- me~opoli:~ m~i~pdities. 24