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• TIF No. 4 RDF Facility (decertified 12/90) <br /> • TIF No. 5 - Alltool Manufacturing Company <br /> • TIF No. 6 - Mork Clinic <br /> • TIF No. 7 Americlnn Motel <br /> • TIF No_ 8 - Jarmoluk Dental Clinic, <br /> • TIF No. 9 Tescom Corporation <br /> • TIF No. 10 - Elk Terrace Senior Apartments <br /> • TIF No. 11 - Timron Precision Gear <br /> These projects represent a good cross section of redevelopment, <br /> housing, and industrial development projects. The Elk River <br /> TIF Districts are set up to exist only as long as grant funds are <br /> still outstanding. This helps ensure that the TIF projects <br /> benefit all of the local taxing jurisdictions as early as is <br /> practical. <br /> C. 1990 Restrictions - In 1990, State Legislators responded to the <br /> charges that TIF was being abused and TIF Districts were <br /> arbitrarily being established. As a result, significant <br /> restrictions were placed on new TIF Districts created after April, <br /> 1990. The biggest restriction was that of penalizing respective <br /> cities for each new TIF District created after April, 1990. The <br /> penalty is linked to state aid losses (LGA/HACA). Many cities, <br /> including Elk River, required that the developer or benefiting <br /> company repay the state aid losses. Regardless of the <br /> mechanisms, the 1990 legislative restrictions accomplished a <br /> basic objective - that of reducing the number of new TIF <br /> Districts that were created in Minnesota. <br /> D. 1993 Restrictions - In 1993, the Legislature further restricted <br /> the TIF program by prohibiting developer repayment of state <br /> aid losses. As with the 1990 restrictions, some state aid <br /> penalties are phased in depending on the type of TIF District. <br /> That is, redevelopment projects and housing projects are phased <br /> in with respect to the state aid losses. With manufacturing <br /> projects (i.e., economic development TIF Districts), the penalty <br /> kicks in the first year a project generates new property taxes. <br /> Therefore, the 1993 restrictions caused many communities to <br /> rethink how they went about establishing new TIF Districts for <br /> manufacturing projects, if at all. During the 1993 Legislative <br /> Session, at least two municipalities, St. Cloud and Brooklyn <br /> Park, successfully sought legislation which exempted specific <br /> manufacturing projects from state aid losses. In both cases, the <br /> • companies were multi-million dollar organizations whose stock <br />