2019.05.14 CC Packet - Laserfiche WebLink

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April 23, 2019 Page 6 of 9 the years to acquire and redevelop properties throughout the community for the present and future benefit of all residents. The latest opportunity, the former New Brighton Elementary School and surrounding lands, became available in late 2017, and is now set for redevelopment in the near future. Establishment of TIF District 34 and its inclusion into Development District #1 would address a financing gap to allow the development to happen, and would facilitate reimbursement of expenses to date. Community Assets and Development Director Schlichting reported approval of this Resolution will allow Ehlers to complete the modification process by expanding the boundaries of Development District No. 1 to be coterminous with the corporate boundaries of the City. This resolution will also approve establishment of TIF District No. 34: New Brighton Elementary (the “District”), a redevelopment tax increment-financing district, located in Development District No. 1. Staff reviewed the proposed findings and recommend approval of the resolution approving the modification to the development program. Shelly Eldridge, Ehlers & Associates, stated this action was the right to redeveloping this site into something that was marvelous for the City. She commented further on the expansion of Development District No. 1 along with the creation of TIF District No. 34. She explained this district would have six parcels, five of which the City currently own. She reported the Midtown Village had two developers that were eager to begin redeveloping the site. She commented Dominium would be requesting TIF in order to complete their portion of the project. She anticipated the TIF District would run for 15 years but could run up to 26 years. She noted Pulte would not be requesting TIF for their portion of the development. She commented further on the report submitted to the City from LHB and noted this project qualifies as a redevelopment district. Councilmember Burg stated there were a lot of misunderstandings regarding TIF. She requested clarification from staff on this matter. City Manager Lotter described how TIF was collected by the City based on the increment of taxes that were gathered based on the increased value of the property over 26 years. He then discussed how TIF dollars could be used by the City. He reported the increased tax base for these properties could not be achieved without the proposed redevelopment TIF District. Councilmember Burg added that this development would assist in increasing the City’s tax base and would bring taxes down for New Brighton residents. Ms. Eldridge reported the new development would pay the same taxes as everyone else. She explained this project would not be receiving an entitlement. She discussed how the TIF dollars generated from this project would assist with City infrastructure. She indicated a gap analysis was completed for this project and noted the affordable housing portion would not happen but for the use of TIF. Motion by Councilmember Burg, seconded by Councilmember Jacobsen to open the Public Hearing. 5 Ayes, 0 Nays - Motion Carried The Public Hearing was opened at 7:38 p.m. Mayor Johnson asked for additional comments, there were none. Motion by Councilmember Burg, seconded by Councilmember Jacobsen to close the Public Hearing. 5 Ayes, 0 Nays - Motion Carried The Public Hearing was closed at 7:39 p.m. Motion by Councilmember Burg, seconded by Councilmember Dunsworth to adopt a Resolution