TIF to the rescue

Pioneer Press Fri, 28 Mar 2008 22:42:43 -0600
New TIF law gives Burnsville tool for makeover

The largest makeover project in the history of Burnsville is on track again. The Legislature this month guaranteed a way to help fund redevelopment of the 1,700-acre Minnesota River Quadrant, Burnsville officials announced Friday. Gov. Tim Pawlenty cemented the deal by signing the legislation into law. With the measure, the city can create tax-increment-financing districts in the area. The districts would be used to capture the taxes on anticipated property value to fund new infrastructure and other improvements. The City Council intends to approve the districts April 7. "It's a milestone for us," Burnsville Mayor Elizabeth Kautz said. The districts could capture $80 million in property taxes over 40 years, based on the site's current market values, said Tammy Omdal, deputy city manager. Once the area is updated, city officials estimate its market-value growth could be up to $700 million. The city's dreams for redevelopment include an 18-hole golf course, a medical professional campus, a trail system along the Minnesota River and a city park with a beach and boat launch. The land accounts for 10 percent of the city on its northwest corner. It borders the Minnesota River and Interstate 35W. Heavy industry occupies the site, including a quarry, three landfills, a rock processing center and a landscaping business. ... The law lets the city bend the rules when creating financing districts. For example, unlike with regular TIF districts, the city could use tax proceeds anywhere in the project area; project deadlines could be extended from five to 10 years; and districts could be created because of poor soil conditions caused by heavy industrial operations.

[[keywords: LandUse;Metro;]]