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PWOf Report Number 10-241 ow __PNMAgenda Section VI-2 BRKAIMN the city that works for you Council Meeting Date October 26, 2010 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Establishing November 23, 2010 as Date for Public Hearing to Adopt Spending Plan for TIF Pooling under Minnesota Session Laws (2010, Chapter 216). DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director evc—_ CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Approve Resolution Establishing November 23, 2010 as Date for Public Hearing to Adopt Spending Plan for TIF Pooling under Minnesota Session Laws (2010, Chapter 216). Legislative History: None Financial Impact: None Explanation: During the 2010 regular session, the Minnesota Legislature adopted the so-called Jobs Bill (Minnesota Session Laws 2010, Chapter 216, H.F. 2695). The 51 page bill included a number of different provisions meant to encourage economic development and job creation. One of those provisions (Sec. 32) modified state statutes related to the use of tax increment. This provision allows cities to spend tax increments (i.e. cash from existing TIF districts) for certain activities intended to stimulate construction. A city may only spend funds after it has adopted a spending plan, which requires a public hearing. As we have discussed on several occasions, the City has $1.2M in excess funds from existing TIF districts that is not needed for debt service. These funds would not otherwise be available for use under state law. The Jobs Bill would allow cities like New Brighton to use these resources as an economic stimulus. In our case, these funds would be used to assist the proposed Stuart Development project. It should be pointed out that this item merely establishes the date for the public hearing (November 23, 2010). The spending plan would be presented at that time and Council could adopt the plan after the hearing. Expending the funds will depend on whether the City can consummate a deal with Stuart Development Company. The City can only access these dollars if it adopts a spending plan. Lastly, construction would have to start by July 1, 2011 and all TIF funds under this law would have to be spent by December 31, 2011.