5.8. SR 06-21-2010 - Laserfiche WebLink

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IMPLEMENTATION District Criteria: The plan assumes that the TIF districts in the ~7ist Avenue FAST will be classified as "redevelopment" under state law. The establishment of a redevelopment TIF district relies on three basic criteria (Minnesota Statutes Section 46g.i74, Subd. io): i. Parcels consisting o f 70% o f the area o f the TIF district are occupied by buildings, streets, utilities, or other improvements. z. More than 50% o f the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. 3. These conditions are reasonably distributed throughout the district. The presence of improved parcels should not pose a constraint. The majority of the redevelopment sites in the FAST include properties that meet these criteria. The existence and distribution of structurally substandard buildings has not been studied. The inspection of buildings and the related analysis of identified deficiencies are typically used to determine the ability to meet these statutory criteria. This work is not included in the current master planning process for the ~7~st Avenue FAST. The City should immediately undertake an analysis of buildings in the "Phase ~" portion of the project area. This information is essential to decision making about • the use of TIF. There is little doubt that some buildings in the project area will be found structurally substandard. The location of these buildings will influence the configuration ofTIF districts. The analysis should include all parcels in the project area where redevelopment is desired. Conducting this analysis removes one step needed to undertake redevelopment. The City can offer potential developers certainty about the ability to create TI F districts. Pooling: Some aspects of the redevelopment plan may be financially feasible (estimated revenues exceed expenditures) while some projects must close a financial gap before they occur. Ideally, projects that produce financial surpluses should be used to support those with gaps. This distribution of financial recourses can occur if the projects are located within the same TIF district. If not, then State law limits the flow of funds between TIF districts. The need to carefully plan the boundaries of the project area and TIF districts is tied to the issue of pooling. The term refers to the statutory limitation on spending tax