Agenda - Council - 02/13/2007 - Laserfiche WebLink

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gone up 1,600 %. The City now receives $1,900 on this property and when this is approved will • receive up to approximately $17,800. Development dollars are being used to pay back this TIF; tax dollars are not being used. He questioned if the commercial component of this will be receiving a benefit from this TIF, and whether TIF is allowed in this area with the commercial component involved. Economic Development Coordinator Sullivan replied this is a qualified housing district, which means that the square foot of the buildings are in compliance with the TIF requirements; 80% of the building is required to be housing and 20% is allowable for retail. Regarding benefit to the developer, there is a requirement for a high finish on the buildings within Town Center that would not occur if it were not for the assistance being provided to this project. Councilmember Strommen stated she is excited about the green roof element of this, which she wanted to see as an element in Town Center. Mr. Jeff Johnson, Anoka County Community Action Program, stated there are two elements to this project that would not be provided without TIF. One is the green roof and the other is the second floor skyway from this building to the parking ramp. The commercial component may benefit a little from the TIF, but up to half of the commercial space will be dedicated to the housing for storage because it backs up to the alley and is not feasible commercial space. Economic Development Coordinator Sullivan indicated the commercial component of this project is valued at a higher dollar amount and taxed at a higher rate. It is a benefit to the City's • tax base to have the commercial element in this project. Councilmember Dehen requested an overview of pay -as- you -go TIF financing. Economic Development Coordinator Sullivan explained the first thing is to create the district, and any additional value created in the district is captured value. With pay -as- you -go TIF financing the county collects taxes and sends the money back to the City, and the City .will pay the developer. In a sense the developer will be getting their .own dollars back. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to adopt Resolution #07 -01 -038 establishing Tax Increment Financing District No. 12 and approving its Tax Increment Financing Plan. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Strommen, Dehen, Jeffrey, Look, and Olson. Voting No: None. Mayor Gamec announced Ramsey Star Express started on Monday morning at 5:35 a.m. The fee is $4.50, and there is free parking in the ramp. There are super saver passes available for $20 with a $22 value. Case #3: Public Hearing: Establishment of Tax Increment Financing District No. 13 and Approving its Financing Plan • City Council / January 23, 2007 Page 8 of 28 —214—