DRAFT 171ST STUDY 04-27-2009 - Laserfiche WebLink

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MPLEMENTATION implementing the master plan. The costs of desired development and redevelopment are likely too great to consider all new projects to be financially feasible. This plan does not offer a primer on the use of TIF since the City is familiar with the intricacies of TIF from its use on other redevelopment projects. Instead, implementation of the plan requires attention to the key issues that influence the use of TIF: Project Area: TIF relies on two types of areas. The "project area" is a broader area with common development goals. The "tax increment financing district" is the specific parcels from which tax increment is collected. The project area is important because it defines where tax increments can be used (see discussion of "Pooling" that follows). The project area defined for this master plan should also be designated as the project area for the purpose of establishing TIF districts. District Criteria: The plan assumes that the TIF districts in the i7ist Avenue FAST will be classified as "redevelopment" under state law. The establishment of a redevelopment TIF district relies on three basic criteria (Minnesota Statutes Section 46g.~74, Subd. io): t Parcels consisting o f 70% o f the area o f the TIF district are occupied by buildings, streets, utilities, or other improvements. z. More than 50% o f the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. 3. These conditions are reasonably distributed throughout the district. The presence of improved parcels should not pose a constraint. The majority of the redevelopment sites in the FAST include properties that meet these criteria. The existence and distribution of structurally substandard buildings has not been studied. The inspection of buildings and the related analysis of identified deficiencies are typically used to determine the ability to meet these statutory criteria. This work is not included in the current master planning process for the i7~st Avenue FAST. The City should immediately undertake an analysis of buildings in the "Phase i" portion of the project area. This information is essential to decision making about the use of TIF. There is little doubt that some buildings in the project area will be found structurally substandard. The location of these buildings will influence the configuration ofTIF districts. The analysis should include all parcels in the project area where redevelopment is desired. Conducting this analysis removes one step needed to undertake redevelopment. The City can offer potential developers certainty about the ability to create TIF districts.