5.0. 6.0. 7.0. 8.0. HRSR 04-24-2000

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• Attachments • Purchase Agreement • Public Hearing Notice 7. Public Hearing - Tax Increment Financing Policy Revisions Issue The issue before the HRA is to consider the modifications to the Tax Increment Financing policy and to hold a public hearing on the policy prior to its approval. Background The new state statues regarding business subsidies mandates that cities modify their current incentive and subsidy policies to include provisions stipulated by the business subsidy law. The law also requires that the city hold a public hearing on such modified policies before providing subsidies. The primary modification to the tax increment financing policy includes the addition of a ratings scale for various project applicants. Such a ratings scale will enable staff, as well as the HRA, EDA, and City Council, to better analyze a given project for its eligibility to utilize TIF. Staff presents this ratings scale under the assumption that every project that requests • TIF may not necessarily qualify for it under these guidelines. For applicants who do not qualify based upon the rating method, tax abatement may be a potential financing alternative. At its February meeting, the EDA reviewed a draft of the proposed policy modifications, provided comments and recommendations on the policy, and directed staff to complete the modifications for a public hearing and final approval. On March 13, 2000 the EDA and City Council held public hearings on the revisions and then adopted the new policies. Action Requested Staff recommends that the HRA consider any input provided at the public hearing and then adopt the revised TIF policy Attachments • Revised TIF Policy • Public Hearing Notice 8. Abatement (Tax Rebate Financing) Policy Issue The HRA is asked to consider and comment on the city's policy for the use of tax abatement as new community development tool. •