ECONOMIC DEVELOPMENT MINUTES
SPECIAL MEETING March 22, 2006 7:00 A.M. TOWN HALL
Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at 7:00 a.m. PRESENT: Mayor Bauer, Councilmembers Willard Eberhart, Doug Borgschatz, Michael Feil. Others present: City Administrator
Economic Development Authority called its meeting to Order at 7:00. PRESENT: Allen Falk, Dale Hinderaker, Doug Fingerson, Trudy Miller.
Motion Falk, second Fingerson, to adopt the agenda. Carried 8-0-0.
Tax Increment Financing Discussion:
President Hinderaker opened the meeting with a short discussion on the ideas of Tax Increment Financing. David Drown the cities financial advisor was introduced and explained the basic concepts of the 3 areas of Tax Increment Financing ( Redevelopment, Economic Development, Housing). Some points of interest were that city populations over 5000 are exempt for using TIF for commercial business. Typical uses of TIF are for jobs, taxable market value, and the “but for” test. Areas where TIF are used include acquisition of land, demolition for redevelopment, site improvements, and infrastructure costs. David Drown included that the competition factor is used in many of the towns he works in. If there is a competing business in town usually TIF is not granted. He stressed that each business is its own deal and can be negotiated in any manner the city wishes. The all or nothing philosophy is rarely used and always the city collects its administrative costs.
After no additional questions the meeting was adjourned.
President Hinderaker adjourned the meeting at 8:19 a.m.
Mayor Bauer adjourned the meeting at 8:19 a.m.
City Administrator Neil Jensen