Agenda - Council - 04/28/1981 - Laserfiche WebLink

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me S.F. 635 would require the base value to be increased by the prior planned improvements, or in other words to exclude prior planned improvements from the captured assessed value. League Amendment Retain current statutory language relating to prior planned improvements. Explanation of Amendment Counties already have the power to increase the base value by the value of prior planned improvements. There is no reason to make the process mandatory statewide. If an individual county is concerned about loss of taxable value to which it would otherwise be entitled, it could choose to exercise its power under the current law. Passage of S.F. 635 as it now stands would make it much more difficult to establish workable TIF projects - particularly the economic development type. •10. NOT MORE THAN 5% OF TIF PROCEEDS MAY BE USED FOR TRUNK HIGHWAYS Summary S.F. 635 was amended in subcommittee to include a new provision that would essentially prohibit any TIF proceeds from being used for any improvements on trunk highways. The law currently allows for TIF to be used to improve streets and roads as part of a project to.encourage development. League Amendment Strike the "no roads" section. Explanation of Amendment -_- The "no roads" part of S.F. 635 represents an overreaction to legislative concerns that TIF,will somehow supplement the state's current system for financing highways.. The problem is that many TIF districts, particularly in non - metropolitan cities, involve mprovements to "Main Street" business areas that include trunk highways. In such cases there is often much work done on the street - e.g. parking, curbs, lighting, plantings, etc. If the League amendment is not passed many worthwhile projects would 'be unnecessarily restricted. There is no rational reason to say that TIF may be used for utilities such as water or sewer but not for roads. The purpose is the same - to make underutilized or marginal properties attractive to develop. CONCLUSION The League has worked long and hard with the Legislature in previous sessions to achieve a reasonable and responsible TIF law. Unfortunately, many provisions of the present S.F. 635 are unreasonable restrictions on TIF and go far beyond mere "tinkering" or "tightening -up" in their total effect. Cities cannot afford to ignore this foot -in- the -door to decimating the TIF law.