1982-03-23 - Laserfiche WebLink

Home Browse Search

I I I MEMORANDUM DATE TO FROM March 23, 1982 James W. Fornell. City Manager James F. Winkels. Director of Community Development SUBJECT: Tax Increment Financing - Long Lake Park The following is a brief analysis regarding the use of tax increment financing for development of Long Lake Park. PURPOSE OF TAX INCREMENT FINANCING Tax increment financing (T.I.F.) is a legal. often used financing method that has been used to stimulate new development or redevelopment. Under T.I.F. the expected increase in taxes generated by new develop- ment is pledged to pay for public purpose type activities. T.I.F. has commonly been used for activities such as land acquisition. relocations. demolitions. utilities, roads and soil correction. The ultimate public purpose commonly include removal of blight. increase in tax base, increase in employment and develnpment of problem parcels. T.I.F. is a financing tool that can only be used in conjunction with development or redevelopment authority. This other authority is most commonly found under the statutes regarding Housing & Redevelopment Authority. port authorities and municipal development districts. DESIGNATION OF DISTRICT On December 22, 1981 the City Council amended the downtown municipal development district to include approximately 60 acres of property that is owned by Midwest Asphalt (Richard Bury), John Miller and Beisswenger Hardware. Midwest Asphalt owns approximately 35 acres commonly referred to as the old stockyard property. This property is on the east side of the Transfer Railroad Tracks, or just east of the Long Lake park site. USE OF TAX INCREMENT FOR PARK DEVELOPMENT The first problem is that tax increments can only be used within the designated tax increment district. Long Lake Park is not with our development district at this time. Tax increments are also supposed to have some relationship to the development or redevelopment that is occurring.