Laserfiche WebLink
City of <br /> <br />River <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />Mayor & City Council <br />Economic Development Authority <br />Housing & Redevelopment Authority <br /> <br />Cathy Mehelich, Director of/Eff~ic <br />Development <br /> <br />DATE: <br /> <br />February 5, 2001 <br /> <br />SUBJECT: Agenda Memo for Worksession <br /> <br />I$$i.~e <br /> <br />This is a joint meeting of the City Council, Economic Development Authority, and <br />Housing and Redevelopment Authority for the purpose of reviewing two primary <br />economic development finance tools. <br /> <br />Sid Inman, from Ehlers and Associates, Inc. will be at the meeting to present a <br />summary of how the Tax Increment Financing and Tax Abatement programs work <br />and an update on recent statutory changes. Requirements under the Business Subsidy <br />Law and impacts of legislative proposals will also be discussed. <br /> <br />Background <br /> <br />The City of Elk River currently administers ten active tax increment financing <br />districts. One of the ten active districts is a housing district, and the others consist of <br />four redevelopment districts and five economic development districts. For the year <br />2000 the City's percentage of captured TIF/total tax capacity was 1.06%. This <br />percentage is among the lowest as compared to area cities such as Monticello (3.85%) <br />and Anoka (16.45%). Elk River's percentage of TI_F/total tax capacity is also among <br />the lowest compared to similar metro and non-metro cities. Attached is a summary of <br />tax increment finance statistics among other cities as listed in the League of MN Cities <br />Magazine (Sept. 2000). <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425 <br /> <br /> <br />