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MINUTES New Brighton Economic Development Commission Approved Regular Meeting—January 17,2012 7:30 a.m. Members/Liaisons Present: Paul Zisla, Bob Smith, Vivian Neumann-Walker, D.L. Beach, Terri Snell, Mike Murlowski, Al Potter, and Councilmember Char Samuelson. Members/Liaisons Absent: Marie Hansen Staff Present: Grant Fernelius-Community Development Director, Dean Lotter-City Manager, Katie Bruno-Office Assistant. Guests Present: Mark Ruff, Dave Callister, Jeanne Vogt; representing Ehlers, Bruce Knight; resident. Call to Order Chair Zisla called the meeting to order at 7:30 a.m. Approval of Minutes Motion by Commissioner Murlowski seconded by Commissioner Zisla to approve the minutes from the December 13, 2011 meeting. Approved 7-0. Report from Council Liaison Councilmember Samuelson reported that the Council will be participating in a team-building retreat on January 25`h New Brighton Exchange Financial discussion: Director of Community Development Grant Fernelius reported that staff has been working with our public finance consultant at Ehlers to update the financial model for the New Brighton Exchange. Mark Ruff introduced himself, Dave Callister, and Jeanne Vogt. Mr. Ruff suggested the EDC not stress too much on the details and rules of how tax increment works. Mr. Ruff defined tax increment as a tool which allows cities to redirect property taxes to assist with future development of the community. Dave Callister reviewed a power point titled, "TIF Basics". Commissioner Potter questioned the term `capture". Mr. Callister explained the City would take certain taxes for a specific period of time. Commissioner Neumann-Walker questioned how the length of time is determined. Mr. Callsiter responded that the length of time is determined by statutory requirements. Mr. Ruff noted that TIF can be used in order to level the playing field in various scenarios. Mr. Callister explained that TIF districts can be created up to a maximum of 26 years; clarifying at the end of the term the money goes back to the county/school district. Commissioner Neumann-Walker questioned when the TIF districts began in the New Brighton Exchange. Director Fernelius responded there are two districts: the first was created in 2004, the second in 2005. The following areas were reported as affecting future TIF: pre-1990 and post-1990 rules, special legislation, local tax rates, state law change, interest rate of borrowing, timing of project and market value fluctuation. TIF costs are financed through General Obligation TIF bonds, TIF revenue bonds, or pay as you go; at a higher interest rate.