Loading...
02-09-21 HRA Work Session Agenda Packet 7800 Golden Valley Road I Golden Valley,MN 55427 CltJ of 763-593-80121 TTY 763-593-3968 1 763-593-8109(tax) I www.goldenvalleymn.gov golden,,,,,, ,Housing & Redevelopmentsva Authority February 9, 2021 Immediately following Council-Manager Meeting WORK SESSION AGENDA This meeting will be held via Webex in accordance with the local emergency declaration made by the City under Minn. Stat. § 12.37. The public may monitor this meeting by watching on Comcast cable channel 16, by streaming on CCXmedia.org, or by calling 1-415-655-0001 and entering the meeting code 177 996 5802. Additional information about monitoring electronic meetings is available on the City website. For technical assistance, please contact the City at 763-593-8007 or webexsupport@goldenvalleymn.gov. If you incur costs to call into the meeting, you may submit the costs to the City for reimbursement consideration. Pages 1. Overview of the City's Tax Increment Financing (TIF) 2-3 2. Adjournment This document is available in alternate formats upon a 72-hour request. Please call 763-593-8006 (TTY: 763-593-3968)to make a request. Examples of alternate formats may include large print, electronic, Braille,audiocassette, etc. 14 7 SUMMARY Housing and Redevelopment Authority 763-593-8006 / 763-593-8109 (fax) Golden Valley HRA Work Session February 9, 2021 Agenda Item 1. Overview of the City's Tax Increment Financing (TIF) Prepared By Sue Virnig, Finance Director Summary The following review of the City's four active tax increment districts provide information on their purpose when created and their current status. As the City looks to future development, it needs to review how some development projects came about. North Wirth 3 was set up as a Soils Condition Tax Increment District, which is a less common type of TIF district that can collect increment for up to 21 years. They are designed to address the presence of hazardous substances, pollutants, or contaminants that serve as an obstacle to free market development. The district was created in 2004, started collecting revenue in 2008, and is scheduled to be decertified in 2028. As of Feb 1, 2021, the outstanding pay-go note with Associated Bank is $122,296.60. Highway 55 West was set up as a Renewal and Renovation Tax Increment District, which is also a less common type of TIF district that can collect increment for up to 16 years. They are similar to redevelopment districts but have different blight criteria focused more on inappropriate and obsolete land use. The district was created in 2013, started collecting revenue in 2017, and is scheduled to be decertified in 2032. As of Feb 1, 2021, an outstanding pay-go note with Golden Villa is $2,173,765.54 and also pays for a portion of the 2017B Street bonds for $2,646,525. Cornerstone Creek was set up as a Housing Tax Increment District, which is the second most common type of TIF district and can collect increment for up to 26 years. They are designed to encourage the development of housing for low- and moderate-income individuals and families, which is generally under-supplied by the free market. The district was created in 2016, started collecting revenue in 2018, and is scheduled to be decertified in 2043. As of Feb 1, 2021, an outstanding pay-go note with Cornerstone Creek is $687,975. Winnetka-Medicine Lake Road Redevelopment District was set up as a Redevelopment Tax Increment District, which is the most common type of TIF district and can collect increment for up to 26 years. They are designed to eliminate blighted conditions that represent market failures, and therefore help so that blighted properties can compete with bare land for development. The district HRA Work Session Executive Summary 2 City of Golden Valley February 9, 2021 was created in 2016, started collecting revenue in 2018, and is scheduled to be decertified in 2043. As of Feb 1, 2021, the City has outstanding bonds for $2,340,000 and two interfund loans for $764,955 and $880,000. Staff has compiled information on these four tax increment districts into a story map for the City website, which will be presented at the meeting. Financial Or Budget Considerations Tax Increment Financing (TIF) is a tool created by the Legislature to support local economic development, redevelopment, and housing development. The additional taxes collected from the increased taxable value over the existing taxable value allows the HRA to finance the activity. Recommended Action No action.