5.6. PCSR 06-08-2010 - Laserfiche WebLink

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IMPLEMENTATION improvements, equipment, or other items located outside o f the TIF district. » Tax increments cannot be used f or these costs i f their purpose is primarily decorative or aesthetic. I f the items serve a f unctional purpose, tax increments can be used unless "their cost is increased by more than ioo percent as a result o f the selection of materials, design, or type as compared with more commonly used materials, designs, or types f or similar improvements, equipment or items". To avoid this restriction, the right-of-way o f street to be improved should be included within the boundaries o f a TIF district. Other Public Finance Tools Although the planning process focused on tax increment financing, it is likely that other public finance tools will be needed to make long term redevelopment investments within the i7~st Avenue FAST. This section highlights potential tools and their application. Additional investigations will be undertaken as finance plans are prepared by specific public improvement and redevelopment projects. Tax Abatement The name "tax abatement" is misleading. No taxes are abated using this tool. In reality, tax abatement functions similar to TIF (see Minnesota Statutes Sections 46g.i8iz to 469.i8~5). Each taxing jurisdiction (city, county, school district) has the • ability to levy a property tax equivalent to taxes paid by a parcel of property. The proceeds of this levy can be used to finance any of the public improvements and other redevelopment activities discussed in this plan. Since tax abatement cannot be used for property in a TIF district, the best opportunity for this tool lies with locations that do not qualify for a TIF district. Special Service Districts A special service district has the capacity to finance the construction and maintenance of the public improvements for the ~7~st Avenue FAST. In simplest terms, a special service district is a special taxing district. It allows the City to collect money to support services and improvements in commercial areas. The general statutory authority (Minnesota Statutes, Chapter 4z8A) contains few limits on the potential uses of special service districts. The nature of the improvements that can be funded with a special service district are not defined (or limited) by statute. The special service district cannot be used to finance services that the City provides through the general fund throughout Elk River, unless the services are provided at a higher level. The statute does not impose any other limitation on the nature of services. Potential applications of special service districts for implementation of this master plan include: » Construction and maintenance o f streetscape. » Construction and maintenance o f the wetland trails and other public open space. ]4 17131. QV2f1lJ2 Focused Area sTudy