2.0. HRSR 03-10-1998 - Laserfiche WebLink

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• Acquisition of land and preparation of sites for development. • Enhancement of existing properties. • Assistance to specific development projects. • State Law gives cities, housing and redevelopment authorities (I-IRA) and eco- nomic development authorities (EDA) a variety of tools to finance these activ- ities. The following section-summarizes the basic options available to finance activities related to the implementation of the Plan. Tax Increment Financing Tax increment financing (1'1N) is the primary development finance tool avail- able to Minnesota cities (Minnesota Statutes, Sections 469.174 through 469.179). In concept, tax increment financing is simple. The property taxes created by new development (or redevelopment) are captured and used to finance activities needed to encourage the development. In practice, TIF is governed by complex statutory limitations. The tax increment statutes are fre- quently amended by the State Legislature. The rules that govern the use of TIF in 1997 may not apply to projects occurring in the future. These complexities make it impractical to provide a thorough explanation of tax increment financing as part of this Plan. Instead, this section highlights the use of TIF as it relates to the implementation of the Plan. The use of tax increment financing is essential to the implementation of the Plan. It provides the financial resources needed to perform several critical redevelopment actions: • Acquire property and assemble suitable development sites. • • Remove barriers to redevelopment, including structurally substandard buildings. • Make development sites in the downtown area economically competi- tive with more traditional development locations in Monticello and the surrounding communities. • Make the public improvements outlined in the Plan more affordable. • Provide an economic incentive for existing businesses to reinvest in buildings and facades. .:41-4-1;11'1 t 6t�i ..-. rr� i ! ' �' r?a •� '� �,. A •9� •t.t 11 l �- t_.71!.. ^.mr1, 1 ! P i �rnirrim ,.m mmit Arm'a mmf !- 11 nllwu'a ' caneu .al Lie, !111: o � rtmmnnnmmammr� miwtw uuu� iJii11J!Ji w ! i j; Lr i 'Fer-Nf ' �y'f''.t:i4� ��. .'�3�:1 _. if,'�..��-t •—INT- ma i - L1 ! F i L �_e ,,"}3i-AdI tI 1Ir�•t �I rrt.i . ji1-1 Tax Increment Finance District 1.22,established concurrently with this plan,will provide opportunities for redevelopment that encourage investment in Monticello's downtown. TIF District No. 1-22 In conjunction with the finalization of the Plan, a development project in the downtown area provided the catalyst for the creation of a new TIF district. • rl: __�A New Bridge Revitalizing Monticello's Downtown and Riverfront Page 4:12