Laserfiche WebLink
• At its last meeting, the EDA reviewed a draft of the proposed policy <br /> modifications, provided comments and recommendations on the policy, and <br /> directed staff to complete the modifications for a public hearing and final <br /> approval. <br /> Action Requested <br /> Staff recommends that the EDA consider any input provided at the public <br /> hearing and then adopt the revised tax increment financing policies. <br /> 7. Tax Abatement (Tax Rebate Financing) Policy <br /> As directed by the EDA at the March 13 meeting, staff has completed a <br /> draft of a tax abatement policy. As you will recall from past discussions of <br /> this new development tool, tax abatement differs from TIF in that each <br /> political body is given the option to "abate" its portion of the project's <br /> property taxes. Generally, this will result in less dollars being generated <br /> for the project than with TIF, although abatement is easier and less costly <br /> to administer. <br /> The tax abatement policies that staff has drafted are very similar to the <br /> recently revised TIF policy. The tax abatement policy emphasizes <br /> industrial development and includes a ratings worksheet to aid in analysis <br /> of proposals. The primary difference between the two policies is that no <br /> • minimum threshold for building value or size is stipulated in the tax <br /> abatement policy. This is due to the fact that the smaller amount of dollars <br /> generated with tax abatement, combined with less administrative time and <br /> costs, will make tax abatement more appropriate for smaller scale projects. <br /> It should also be noted that staff is proposing that tax abatement be <br /> referred to as Tax Rebate Financing (TRF), which more accurately reflects <br /> how the tool functions. Sherburne County, which is also drafting a tax <br /> abatement policy, is considering a similar name modification to avoid <br /> confusing the tool with other, more established forms of tax abatement. <br /> Requested Action <br /> No action is requested at this time. However, staff asks that the EDA <br /> review the proposed draft of the tax abatement policy and provide <br /> feedback. <br /> 8. Incubator Update <br /> Staff will provide a verbal update of recent interest in the business <br /> incubator. Further discussion on the incubator is planned for the April <br /> EDA meeting. <br /> • <br />