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Ms. Kvilvang stated that when debt is issued there is a call date set for the time at which you can <br /> attempt to refinance the bonds or pay in full. She noted that for a bond of ten to 15 years, the call <br /> date would typically be set for seven to eight years for the issuance of the debt. She noted that <br /> Ramsey has taken advantage of this multiple times, refinancing the debt following the call date <br /> to obtain a lower interest rate. She provided an overview of tax increment financing (TIF) and <br /> the type of items that can be funded through that development tool. She noted that cities do not <br /> need the approval of the School District or the County to establish a TIF district. She provided <br /> information on the length of time that a TIF district can be open, noting that certain conditions <br /> must be met in order to qualify for longer terms. She explained that TIF is often used to spur <br /> development or redevelopment which in turn benefits the local economy in that municipality. <br /> Commissioner Bendtsen asked the type of tests that are applied to determine if the purpose of a <br /> TIF is valid for that type of district. <br /> Ms. Kvilvang explained that there are specific criteria that must be met in order to qualify for the <br /> different types of TIF and reviewed some examples for the different types of TIF districts. She <br /> stated that Ramsey has four TIF districts and believed that the City has been studious in its use of <br /> TIF districts. She explained how a city reviews a request for TIF funds. She noted that under <br /> the Data Practices Act, once a development agreement is approved, it becomes a public <br /> document. <br /> Commissioner Bendtsen asked where the idea of a proposal for TIF funds is presented or brought <br /> forward. <br /> Ms. Kvilvang stated that typically a request is brought forward from a developer who would then <br /> work with city staff to determine if their project would qualify under the city's policy and if so, <br /> the developer could then submit to bring the request forward to a public hearing. <br /> Commissioner S. Anderson stated that there are people that do not like TIF and asked for input <br /> as from their point of view. <br /> Ms. Kvilvang stated that the common argument is from those who are not seeing the benefit <br /> from the development for a delayed period. She stated that argument comes back to the fact that <br /> you would not have that extra tax increment but for that development. She explained that this is <br /> a short-term development for a long-term gain which benefits the residents and businesses in that <br /> area when the TIF district comes offline. <br /> Chairperson Field thanked Ms. Kvilvang on behalf of the Commission for her thorough <br /> presentation to the Commission. <br /> Commissioner S. Anderson stated that this presentation seemed to represent the positive <br /> comments regarding TIF but not the negative perspective, noting that there is an opinion of that <br /> nature out there. <br /> Ms. Kvilvang replied that during public hearings most of the negative comments are regarding <br /> the fact that they will not receive the additional tax increment from the improvement or <br /> Charter Commission/October 19,2016 <br /> Page 3 of 5 <br />