Laserfiche WebLink
• EDA Commissioners may have other ideas about Tescom's desire to <br /> control Lot 1 without expending funds to do so. <br /> ACTION REQUESTED <br /> In the near future, the EDA is asked to formalize an understanding <br /> with Tescom Corporation regarding its desire to have some control <br /> over Lot 1. <br /> 9. TIF Legislative Issues <br /> Numerous Legislative issues regarding Tax.Increment Financing are <br /> in front of State Legislators in St. Paul. The continued use of TIF will <br /> go a long way towards determining the success of the proposed Elk <br /> River Business Park. Rather than placing additional restrictions on <br /> the use of TIF, new bills have been introduced to restore its continued <br /> use. A discussion of past legislative action follows. <br /> In 1990, new restrictions were placed on TIF which resulted in a <br /> community losing a portion of its state aid as a consequence of new TIF <br /> Districts being created. This restriction nearly ground the creation of <br /> • new Districts to a halt in Minnesota. Some Districts, however, were <br /> created. In Elk River, Districts No. 9, 10, and 11 are considered post <br /> 1990 TIF Districts. Although it is likely that the City will lose a <br /> portion of its state aid as a result of these Districts being created, <br /> specific language in the respective contracts for private development <br /> require that the companies benefiting from the TIF assistance <br /> reimburse the City for any loss. <br /> In 1993, additional restrictions prohibited developer repayments of the <br /> state aid loss. As a result, new TIF Districts in Elk River are subject <br /> to close scrutiny and on-going evaluation. The 1993 restrictions have <br /> not stopped other communities from using TIF for redevelopment <br /> projects or for manufacturing type projects. In fact, some communities <br /> are arbitrarily extending the life of pre-1990 TIF Districts in order to <br /> issue more bonds in support of a manufacturing or housing projects. <br /> Elk River may not have this luxury. Toward that end, it is to our <br /> benefit to support the easing of certain TIF restrictions during this <br /> current session. For example: <br /> • One proposed bill would remove the state aid penalty for TIF <br /> redevelopment projects; <br /> • <br />