Res 1994 - 27A Opposition to Legislation Imposing Limitations on Use of Tax Increment Financing Based on Percentages of Tax Capacity, . :,
CITY OF MENDOTA HLIGSTS
DAROTA COUNTY, MINNESOTA
RESOLIITION NO. 94-27 a.
R�sSOLIITION IN OPPOSITION TO LTGYSLATION IMPOSING LIMITATIONS ON
IISFs OF TAX INCR�N't' FINANCINC� BASFsD ON PERCENTAGES OF
TAX C1�,PAC I TY
WHEREAS, the Minnesota House of Representatives has introduced
legislation (3209) which would limit the use of Tax Increment
Financing to a maximum percentage of total tax capacity; and
�IiEREAS, the City of M[endota Heights has had in place a Tax
Increment District for the past thirteen years which has been a
valuable tool for the development of land areas in the City which
are adversely affected by their proximity to the metropolitan
airport; and
�HEREAS, without the use of Tax Increment Funds, such lands
could not be developed in a manner compatible with the airport
runway system, and
�HEREAS, through the use of Tax Increment, the City has been
able to assist in the redevelopment of such lands in a compatible
manner, and has attracted over seven international and national
firms with payrolls in excess of 1,500 employees; and
WHEREAS, the use of Tax Increment has enabled the State of
Minnesota Department of Transportation to construct a regional
maintenance and office headquarters in the area with a reasonable
development cost; and
D�HERLAS, the State Legislation limiting the future use of Tax
Increment financing does not take into consideration the fact that
the Mendota Heights District is one of the few that shares its Tax
Capacity with the "Fiscal Disparity Pool", to the extent of some
$606, 511 for 1994, and the base Tax Capacity of the District is
$1,055,905, not the $1,652,416 stated in the legislation; and
WHEREAS, the City has future projects which will result in
substantial development of the unutilized land areas in the
District, and will be severely limited in the future use of the
land due to airport conflicts; and
NO�P THF3REFORE BE IT RESOLVED that the City Council of the City
of Mendota Heights urges the defeat of any legislation which limits
the future use of Tax Increment funding that has any relationships
to the total Tax Capacity of the City.
Bg IT FIIRTH�R RESOLVED that copies of this Resolution be
forwarded to official representatives of the City and the members
of the Tax Conference Committee.
Adopted by the City Council of the City of Mendota Heights this
19th day of April, 1994
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
BY �=�� � b
Charles E. Mertensotto
Ma.yor
ATTEST
K thleen M. Swanson
City Clerk