##VIDEO ID:https://stpaul.granicus.com/player/clip/5029?view_id=37&redirect=true## Authority. Roll call, please to order couple is Here just make your here. 6 present one absent that being commissioner believe. Item number one s are 24 dash. One. 75 tax increment financing. Tif to a one. And just before we go to this item, I wanted to take point - of chairs, privilege and also invite others around the table. This is deputy director of the studies last the training you know, I think you should come up. It feels weird to try to see you behind head. So. And I I just want to thank Deputy director so much. I first got to know you when you were working at the time safety inspections, which I laughingly always said our budget meetings with my favorite department but I think that that MAY have shifted over time. I still love dsi, but I think a lot of that was actually due to you and your leadership and the way that you have always been the adult in the room. You have always been a steady hand you have a good sense of humor, but you're also always able to prioritize and take the moment seriously and and do the things that are not necessarily the shiny things, the things that don't get the headlines but are so important. And and that need that steady presence and that vision day-to-day to move them forward and get them done so I. Greatly resent the city of Bloomington will continue to harbor. That will bring bill. They are close be. And so for everyone to know opportunity to our suburban neighbors. But I am really so grateful to you and I wish you the best and have the city of Saint Paul is just so much better off for having had your presents in your leadership. So thank you. And I will also offer up the opportunity, my colleagues to roads want to give you a chance to take viewers and it will be celebrating. Your view as well future opportunities of this is not send-off officially, but wanted to take a moment. We were here. So I think I saw this can. Yeah, thank As a former la to the office which I serve, I had many interesting and wonderful opportunities for with deputy director othe studio and just some wild stuff, honestly, he always took the opportunity to walk me through it. There are many site opportunities, right, walked through and learn to like the many different complex layers of zoning and licensing and how they all chicken Cooper shaking at and previous surfaced. Ribley one one of my favorite ones today because that's what I learned. How much of your lot can be covered by impervious surface. But it's just to say that there's so many things that I learned along the way from you that I was asked a lot on the doors actually. And so like when I find myself here, there's so much of your wisdom that imposed upon me and really wonderful ways that i've utilized. Plus t serve constituents. 45 but also very excited to the constituents of same Paula. So thank you so much. And. bring France was very lucky to have you. And we were fortunate for the year tenure here. So thank you for serving 2 departments. And just bringing your absolute wisdom and expertise to everything that you do and you will be greatly missed. Thanks this camp. Thanks for getting the city, Thank Yeah, I just I relate so much to bbq Mr Sharing about because thinking back to 6 years ago when I started at the city as a brand new councilmember, I just like felt like I was scheduled 6 ways to Sunday, 6 briefing coming in once. Like everything so overwhelming. What is this place? Was this big institution and my legislative aide at the time that Prevatt ski came on board and he was just like I found the guy and it was basically. It was basically like for for 60 to 80% of things that are happening to our constituents that we need help with. I'm just going like hit up Travis ago. That just became like a front line saying. And so I was laughing because I was like, who is this person? And and they realize that that level of responsiveness and just the way that you supported us at the time. And still on these frontline issues that are happening in our community. Where they're uually like overwhelmed are upset. They just want to feel like someone on the other end of the line is picking up to help them and he's going to stay with them and figure out their thing. And we are so often in that that is like huge part of our rules. But is our our purposes Council offices. We really are. People threw it to the city. But if we can't have through line to the administration to the agency to just get the problem solved, can super challenging. And so I just want to recognize that you've been both. So so in the minutes of these little individual things. But then you've served in multiple leadership roles and apartments. And that really is felt throughout organizations so deeply. Appreciate your your service to our community and wishing you the best in your next endeavor. And who knows? Maybe you'll learn more things and come back some time. We'll see some. Thank you. Thanks calling. As things turning. Grass want to chime in and say thank you so much to you for your work to be director to do. I'm just reflecting a lot on Le can make for years here in just this year. The difficulty taking on departments. You worked It really speaks volumes about the talent that you bring to the table and how wise you are. I really you want to say thanks for always being somebody who so kindly always having a smile on your face. Very approachable, unresponsive. So those are the things that I wll always remember about you. And you know that you will continue t carry yourself I that As a leader in your next endeavors here. So thank you so much. Yeah. And a look forward to be able to see you in passing again. And I worked together. 7th street ransom. Just I Yu just the thoughts of so many of our colleagues. But I think one of the things that I will say is the vice chair of the jury. There have been moments where both veteran anchor was not available or the birth of good wasn't there. And yu couldn't tell where see mostly filling the shoes and though say things like I'm I found those meetings to go live from the discussions. We've had to be really helpful. Thank answer the questions that are given to which I greatly respect and so and many ways I feel like sometimes, you know, when you're at people that I know kind of when you're in the Stephanie space, when become, you know, the director and the leader until I'm looking forward to that transition for you, because I think that that is what if truly makes a incredible percent credible leader is. When yu can embody that same energy, if not more energy than the person that year. You're being the vice chair of error like being deputy director for and so just really awesome to have had a chance to work with you even though briefly, but very genuinely appreciate it. Because I been trying to learn this role, anything it a lot easier. So thank you. Thank you. I. Echo and thank all my colleagues for the sentiments and hopefully directed us to do. This is giving you a sense of just how. How many dfferent ways your tenure with us has made a direct impact. So Love to give you a couple of minutes. If you like to respond in any way. Sure. Chair Nature Commissioners, thank you so much for the kind words in my 9 years being here at the city of Saint Paul. I've participated in dozens and dozens of. Job interviews as as a panelist and oftentimes a question I get asked is why do you want? Why do you like working for the city of Saint Paul and my standard answer and it's true is that I feel like we're all on the same team that we're all working in swimming in the same direction from the mayor's office, too. The City Council to the to the h or a board. We all have kind of the same shared and progressive vision for what Saint Paul could and should be. And we're all working towards similar goal. So I really appreciate your leadership in your roles within the city and helping provide that direction to staff. The other folks that I should think he's had a good pleasure to work with 2 great directors. Director survive just for Dsi and then Director Goodman without them kind of at the helm and directing me. It's provided me with countless opportunities to kind of grow my experience and give me a chance to work on a whole variety of issues up front, which really have challenge me both professionally and personally. And I wouldn't be here without them. But the folks that really should think are at the top of my list. Our staff. Any of the professional successes that I have had at the city of Saint Paul and really city or county that I've had. The pleasure to work at is due to the work and the effort put forth by staff. We oftentimes are kind of at the front lines where the talking heads delivering the message. But most of that work is done by incredibly dedicated and energetic and ethusiastic. And folks that live in the city of Saint Paul, which I'm excited about moving towards Burnsville because healthy, I live in Bloomington, not Burnsville, basically live in that. This is why got okay. That's that's what it I'm sure a lot of sense. But it's it's the saff. They really are. What energize me. Most of the ideas that I bring Florida coming from staff. So I just want to raise them up when you when you recognize me direct, you recognize your staff, too. So. I thank you for the kind words really enjoyed my time working here. It's been it's been a great opportunity. And and I'm really grateful. Thank you so much. Thank you. Are grateful and we will celebrate you on OCTOBER. 22nd at that weather brewing at 04:00pm. It after wll be more liquids there than there are here. Southwest part. Thank Thank We will do a hard pivot has at his camp sometime says tax increment financing to arrive. timing and yet. Number one s are 24 dash. One. 75 tax increment financing tif to alliance. Welcome as well. Thank Chair chair commissioners and I'm here So I've been here a couple times already. And I was here in APRIL to kind of introduce tax increment financing, especially to the commissioners. And so I so I did that and I'm going go a little deeper dive into how And then just this past month, I also came back and I talked a little bit about some of upcoming action this year. One is approving certification of a tiff district under lead to certifications. So I'm gonna do a deeper dive on that. And then also to talk about our pool tax increment stat. We have available for affordable housing. So I'll be covering that topic as well. And the decertification of a tiff district. I've been asked to cover what requires early to certification and why what happened to the tax dollars an example of a tiff district with early to certification. First, I want to talk to if and how it works. So tried to get a little more graphic. And in this presentation, I actually have a link down in the left corner there for state auditor. They do a lot of training videos and resources for tax increment, both for local government and for the policymakers. So I would encourage you to to take a look at their site. Images here are from from their presentations. So they explain how tif is not a tax break. It's reduction in taxes. All the taxes are paid and it's just a matter of what happens to those taxes when they're paid. The tax increment captures the increased value of a project. So the value before the project is built is frozen as we call it and taxes from that value continue to flow. And then the increment is what is available to the development this slide just kind of further talks about. How the property owner still pay their taxes and how the tax increment or divided the Texas are divided and then this slide here is an actual pie chart showing the distribution. This is from one of our tif districts where the properties and the tif district had a total annual tax payment of nearly 900,000. And then it shows how their taxes were distributed. From the annual payment of their taxes with 711,000 of of their tax is actually going to that if authority, the hra and then we expend those dollars in conformance with the adapted to plan. So just a reminder to is requires about the development cannot happen, but for the tif. So we have to the developer has to demonstrate how their project will not happen otherwise then they must incur all the cost of the project. They have to do all the work and then they pay for all of those costs in in eligible tif district and then they have to complete the project. And then once they do all of that, then we will start collecting tax increment and we reimburse them as taxes are paid to repay them for their investment in the project. They take all the risk. The developer takes all the risk that they will get reimburse for that initial cost. That to complete the development so that the city does not take the risk. Speaking of a page legal tax increment, which is 99% of of how we use the tool here in Saint Paul. So I'll pause there. If there's any questions on tough and how it works. Before I go on to the next topic, a what really appreciate and MR. Lacey, your head of graphic that you show because I think that tip is often seen as a tax break reduction or abatement. So I think that sort showing. But that's not the case. And that poll taxes are paid. But with their use far as what is different is is really critical. Can you just remind We're just where the where do the dollars come from to finance the project and and who is being reimbursed using the Internet? Acres, commissioner. So the developer. And as is indicated on the slide, the developer has to incur and pay for those costs of developer has find the money. So generally, don't get a loan. And then tat loan is collateralized with the tif. Know that we issue to the developer Sunland the payments that we send on that if no, and they used to pay back their loan. So the developer takes out a loan do the work and the additional taxes that they pay on the and the new. Increased value of the property. Are sent back to them to help them pay off the loan. They took out to the construction journey commissioners, a portion of the taxes. So generally we only provide up to 90% of the increment. And so as shown on this slide, they're paying their taxes and only a portion of it is tax increment and then 90% of that tax increment is what made available up to 90% is what made available. For them to pay on their own. Thank you, MR. Thanks. I'm just learning out loud along the way here and it might go back to the 101 of the 2, 1, But it's my understanding that the policy origins for tiff in our state come from state statute that the public purpose for using this financing tool is to mitigate blight and otherwise catalyze development in situations where we can't. And then also I'm just trying to play back and confirm my understanding here. 2 projects have certain like public purpose requirements that go with what public incentive they're essentially getting like. It's it is a I think it is a form of a subsidy or financing structure that allows for an incentive in a benefit to them. And then the public purpose that they have to do good on is and I think in statute, but it's essentially around like workforce requirements, housing affordability. Can we be reminded of just what in statute or the public purpose things that they have to deliver or that they need show in order to also qualify. Acre Commissioner Jolly. redevelopment of district is a type of district that is set up remediate flight, as you said. So so there's a condition in the district that we want to improve. So United Village being an example of that. That's a redevelopment, if districts. So we have the development has to incur eligible cost of a redevelopment. So they have to remove the buildings that are lighting factor. They have to put in new infrastructure and they have to ready the ground for for vertical construction. Generally redevelopment, if does not fund vertical construction unless it's an affordable housing building. So the public purpose mentors to ready the site, clear it and get rid of the blight and put in the infrastructure needed for development. So in the United Bill example, like you just said, that was the soil remediation, the pollution, the street build out all the work that's happening there. But it's not the buildings. I think these points are with talking through because I think that there's a lot of invisible rules that are driving the way things are changing in our community. And it's important for. It's but it's been very important for me as a policymaker to understand that to help shape and impact the course of those things that are huge that are hotly debated, watch topics in. It's not in the way represent. But you know, the woodland right there to the neighborhood. It's all the same kind emotional concept lived experience for people I represent. So thank you for that. Just talking us to kind of bring the to bring the country to the real world because it fundamentally is part of what we do. And that's really helpful for me that I got I always go back to the statute and that's how I understanding of like why are using this? What are the ways we use it? All of that's helpful. Thank you, chair. Thanks to I appreciate the clarification. Okay. Attorney Kirk Commissioners moving on then the certification of a tiff district. So the question was asked requires or leader certification and wife. So going back to Minnesota State statute, which is what all of that if districts are established following a mostly get special legislation through the Legislature, we have to follow the statute and the statutes require ad limit total spending in a tiff district and they limit the total spending beginning in the 6 year. And so this requirement can be challenging when you have a large redevelopment site like Island Bridge or perhaps United Village, where you MAY not incur all you're eligible costs and that first 5 years then in the six-year, you're now going to be limited on and how you can spend your tax increment. And so when a determination has been made that no additional spending is allowed it, we've maximized the spending in those 5 years. And now we're limited and can no longer spend. We need to decertify the tif district. We no longer hve legal authority to expand those dollars that we receive. So if we didn't decertify, we would just have to receive it. Send it back to see that. Send it back. So because we don't have the authority to spend it any longer. Alternatively, if it's a district that has met its limitations on spending, we could decide to close a district early because we've met the the desired outcome in that tif district. We've covered all of our obligations and do not desire or encourage pooley. Right. So pulling is when we use the tax increment outside of the district or after the 5 years to do additional development, affordable housing is our main to what we do for for pulling. So. When the tipp District is decertified, the tax capacity that was captured in that tif district is now moved over to the tax base. So since properties are already paying taxes, they continue to pay their taxes. And now all of those taxes are collected by the taxing jurisdictions. None of the taxes are to over to tough authority. Just to be clear, when the tipp district is in place, all of those the increment that has pledged to the tipp District does not go to the school district or to Ramsey County. And when that if district is decertified than those the same tax dollars that are being paid would go to jurisdictions, Attorney Korea? That's correct. Yes. And so early decertification just means before. 5 years have passed. Sorry to Niekerk commissioners. No early means before the statutory deadline. Redevelopment Distric can be in pace for up to 26 years of collections and same with the hosing district. So early means prior to that final election So that total spending is limited in the 6th year. But you cn continue to have that of district. You're spending is just cut out. Craig, thank you. So this next slide shows a graphic of all what happens to the tax dollars when the tipp District is decertified. So again, this is graphic from the state auditor where they show. What does it for your tax rate and your levy when you have tax increment financing districts so you're capturing some of the tax base in the 10th district, which means you can't tax on it. So when the city set Sarah Levy, it's a certain dollar amount and then the tax rate is determined based on what's in the tax base. So when a tip district is decertified, the tax base goes off with the amount to certified the Levy. If the levee doesn't change, then the tax rate will fall. If you want to keep the tax rate the same, you can increase the levy and then the taxing jurisdictions will now increase their tax revenues from the decertification of the district. But they have to increase the Levy to capture that. And this has always been something that's been think. We talk about interesting way. We because we say, well, if we were t decertify tif district and all of those dollars would go back into taxable pool, we wouldn't necessarily see more in tax revenue because we would have to raise the levee to do that. I've always struggled with that a little bit because the fact of the matter is that pretty much every budget year we are being asked to raise the levee to some extent. And so in my mind, it's it's true. But since we're always raising the levee, the more taxable properties we have in our tax base the less of an impact that levy increase has individual property. Is that? That accurate? Thank commissioners. Well, yes, I mean, yeah. It's all things equal. If everything was the same. And that next year when a tip district was decertified and all you did escape the same levy. Then the taxes paid by everybody else will go down. Because, you know, higher tax The alternative is you increase the levy and then raise taxes. Stay exactly the same. And you have no more dollars into the general fund. so additionally, I was asked give an example early decertification to district that we just heard a fight early was a crime to let village redevelopment tif district. And and it was established in 2010 and we collected the final year was in 2021. And so we decertified that 17 years earlier than it could have statutorily been in place. The district was created to demolish a blighted building and construct new senior housing and the developer have requested tif assistance to fill a gap in the project, but also to enable them to have their senior senior debt so that mortgage on the property and so executed development agreement for the project pledge. 65 1% of the tax increments from the district so that we could maximize or pool lane. So we we set it up so that so that we could try to keep the district in place and pull the tax increment. That if no one had a look back in it, though, because of the conditions of the gap and senior debt. So the tax increment that we actually ended up sending to the developer or a lot lower and their nose paid off early. And so we had we maximize or pooling. And so now we had to close the tif district. We no additional eligible uses of our tax increment and and then the cat capture tax capacity was returned to the tax base. No changes that development continue to pay their taxes just like they had. And it shows here that we just over a million dollars for for qualifying affordable housing from the strip district. While it was why was open generating tax income. And many questions on the certification. Before I move on. Coming, just ask at rally in Antarctica. Just one. No one is questionable time that so decertification, does it just mean like this tiff district is now over? It has completed its purpose. The financing schedule is coming to an end. And like now it goes back to being normal land. What does it mean? An everyday person Commissioner Jolly. So the certification is is a term used because certification is what you do in the beginning. So when you establish your tif district, you have to request a few certified. And when use when it's certified, that's where the base value is. Set. And the term of the tipp district is set all of that. So it's so that's so then to decertify. It is when it expires either by statutory terms or you do it early. And if you do it early, you need an action of of that. If authority close it early. And Development doesn't change or hate they're just they're paying their txes. You know, so it's not really a change in the development or that taxpayers. It's just a function of what happens to those. So it's kind of like closing out the district like we started it. We had these parameters. Now that work is completed. We formalizing its closed. Is that the best way to think of it? Yet your maker Commissioner Jolly on the important point that I have forgotten to mention is that we no longer collect tax increment. When we do certify we can continue to spend if we have dollars that that still in possession of authority. So Nomar collections, it goes to the tax base, but we can continue to spend. And then if I MAY, just one quick follow-up, if someone wants to look up like the boundaries of a tiff district in what the terms of it are and what the specifics are, they can they do that. Thank you community member. Wants to learn more just at or even our offices like for the public. Where can they do that? To make a commission Dolly. I know we have an internal map system that our research where they have links to all the tipp district. I don't know if that's been made publicly available. I can check. That would be great restart I thanks for bringing that up and actually I and not to put him on the spot. But one of my constituents actually here today to learn about taxing current financing and think it's a good reminder that there are folks listening home. There are people who we said the very beginning of our meetings this year, that one of the reasons for doing this sort of one-on-one to a one on these important topics wasn't just for us to learn. But for the members of the public who care about this topic to learn. And this is an issue that people are really interested. And so. Grateful to my constituent for being here today and I'm sure others of our constituents are watching. So I do think if we could figure out whether that information, I know it's public, but how to make it more accessible would be would be great and why if I MAY to on that point, it It would help me a lot in my work with constituents if they're connected to like if those maps are connected to a jury action than usually I can go and I can pull. Item and I can lay out the documents that came to the table, the public process sometimes finding the most updated version or just the status of it is really helpful to just take to a community meeting, sit down and explain here the boundaries we're talking about here the prime years ago. With that, here's the public benefit. Here's how it all I think this would be a great thing to just follow up on in terms democratizing this information. It's also I mean, I think it's like actually up fairly insular topic like nobody wakes up and goes to school or daycare. And he's like texting financing like all through their lives. This is like of the you know, but it matters so much neighborhoods in the work that we do. So thank you for engaging in that because I just think information sharing has a lot of value in This To that point. Thank you, chair grab a question about actual form a love of but how the taxes are like part of the pool is that. 100% of wines, taxes are future taxes are. Is there like a percentage in terms of how that's getting pulled? Chernykh Commissioner you mean the tax increment center paid? How are they distributed? No, not the server to the project and say how it's pulled from like actual taxpayer, the presidency. Like we dtermined boundaries. But how is it? For the next 10 years, each of these houses are going to be people. Unlike what portion of that, because right now we just have like just kind like the general rod number. We don't know, really, particularly, for example, say if my house is part of that tif district, is it 100% of my future tax is part of that poll or is that a portion of it? Acre Commission Each tif district is established with individual parcels that make up that tif if a parcel. So the the example I gave the Crandall at village. that we closed early. So that was I think one or 2 parcels only. And so those parcels their taxes, their incremental taxes were sent to the tif authority. But it was based on that tip district. What that what the requirements were. There's not a general requirement for every tip district. It all depends on which tif district the personal is it can only be in one tip district. You cannot overlap tif districts and then what the type of tif district is, how long it can last when it gets to certified if it gets certified early. So there there isn't a comments. A common process. It's all, you know, each district stands on its own. And the personal and more this is my question, I guess in that also just makes me realize that I'm thinking about it. I there's residential. That's part of this pool. But what you're given example to is this is the area tat's blight. There isn't any residential. There isn't any. Development. It's shuns. The district is literally the use site. So it's like the future taxes either ever. And he liked districts that does include residential somewhere like the polling of taxes will come from, you know, just like our residents. Acre Commissioner I cannot think of a tiff district that we have in place. That's that's like individual single-family homes. We would have had qualify each of those parcels to be included in the tipp District in the beginning. And so I I know one of the actions that I'm bringing forward. In a couple weeks is it started with that. It started with neighborhood, but whole neighborhood was you know, redone. So there's no more single family homes in the neighborhood so when last clarifying question, thank you, chair maker. It is a fact that pretty much when people are talking about tip districts. It's not fear taxes that's going to this tip district is a pool. Future taxes on that par. So that's going to be developed, correct. To make our commission a minute. I'm going speculate that when they're talk with homeowners talking about tax increments, they're talking about the fact that we're including diverting taxes that could have been available. The tax Not necessarily that they're contributing to a tax increment district because like I said, I don't I don't know of any homes that are in tough districts shameful. Thank as we I really appreciate the line of questioning and the district were does somewhat confusing here, actually, as as you're talking think about that because it's really you think of a district a lot of parcels. And it really usually 1, one parcel or it could could be an area of development like Island Bridge, for example, or Hillcrest. More often than not, it's one one parcel and you're right. Really I think when we tend to hear from folks about tax increment districts, I think the concern is either people think it's some sort of tax giveaway are tax breaks to developers and then they and then they feel as though tere for the developers and paying their fair share. But I think one of the key points that I have learned about tax and rent financing from you as well as that. The incumbent is really the key. So the fact that the developers developing the parcel. Adds value to the parcel and then makes there be additional taxes paid on it. And the only part that is going to help pay for the construction is the additional value that developers brings in some ways. It's like. Allowing the developer to finance the project over time through the additional taxes that they have to pay for. The fact that they've improved the project I hope I didn't just estate and take everything backwards even trying That's how it's been helpful to It looks like that's all right. Had come out and then we're going say, yes, that's exactly When diversion. It's like using income it from the increase in property value. Developer pays in taxes to finance element. But I wanted to mention that was the decertification 17 years earlier is very unusual, isn't it? But it's not typical that we if this is a good example because it's it's clean. It's clear. But but almost in my career, never seen it. Tax increment finance district, the to certify that early. That's that's unusual want to point that out? Usually they go closer to the life of the statutory life. And one other thing I'll say is that another way to think of so the band reason for is collected commissioner is like the increment area and the project area. Maybe counties a little bit differently. So the incoming area would be the parcels that create the income. It and the project or in some cases the money can be spent is larger than to some extent. So that's something and maybe think about some nomenclature that we could use. It might be a little more helpful. I think a way to pulling that. We're not we're not there thank you, I was just going make a comment on your comment that the. You know, we're talking about the certification, you know what tiff district isn't forever. It after the property tax values, much property tax. Now it is much higher because of the development now vacant property pay property taxes like everyone else. So. And they can and they're continuing to pay taxes. It's just that their taxes on the income get to use be used to refinance finance the project or time. So even during the existence of the tipp district, their their pain pain, the additional taxes that they've created, that yet. Thank you for the way that that you stated just other questions or comments or attempted badly restating. What's going on here? Okay. This will turn commissioner, I will say since Highland Ridge was brought there is some single family homes in Highland Ridge. They are in that tif district. But the tif district was set up to put in all the infrastructure, all the roads and all of that. So I just want clarify my statement as we talked about Island Bridge. So okay pulling for affordable housing so again, this state statute allows us when we create for redevelopment just our housing tif district to take increment sand and expend them on activities outside of the tif district. So so we have the tipp district is established to meet certain purposes. Certain goals. But then we can say we're going to also take a portion of the tax increments from from that tif district and we're going to use them and other things. And that's called pooling. And redevelopment district is limited to up to 35%. With limitations to pool. Also, 65% has to be for the project that tif district of the tipp District. And that's what were limited by is is what our in district qualifying expenditures. And that's why if we don't have enough in district qualifying expenditures, then we're limited on how much we can pool. And then once we reach those limits, we no longer can spend. And that's when we decertify. So it's kind of those kind of tests we have to monitor for all of our district's monitor where they are housing tif Ollie has cooling limits. If we use tax increment and a housing district for qualifying affordable housing, then it's treated as if it's an in district costs so that so the polling doesn't really matter for housing, tough districts. And so Itrack and monitor all of pulled tax increments from are existing tif districts. The allocation of a pool tax increment to a project must be authorized by this body by the tree board. So on this slide here, I'm showing you prior projects where we did use pool tiff and the amount that was used. And I'll just say 12. 22 university, the 748,000. That was kinda let village. So that tif district that I just spoke of, that we do certified. That was the tip district that contributed to that. The resource to that project and then a little bit of it went to the Hollows at 5.20, pain for 5.20, pain and the 2 ppl projects we also created hosing tif district. So a lot of times when we set to fund to do a housing tif district project. We look to that source as long as you know, and not long as there's enough there, let's say. And then if there's a remaining gap, we would we would layer in pool. Taft as us as a resource to get the project done. So this just because, you know, when you're already doing the tif district to layer on more pool. Taft, all the requirements are exactly the same. So it's it's kind of a a a partnership. We say. Just pause for one second as well making sure care this, Wolf, when you're pulling for affordable husing. Do you have to like when the tif district is established? Is that when you have to you have to have stated like wat Affordable Housing project that that that that money will be used for or is that basically come through as like a separate action to the hre? How that work? Turn Acre Commissioner Joe so when we set up the tif district, we do have to make an election to increase our polling. So that's the to get to 35%. We elect to pull an additional 10% for qualifying affordable housing projects. We don't identify the projects, but we do make that election. And so then that sets us up to use that we don't have to use it, but we elect to do that. And that just maximize And that's why I'm kind of like village to, for example, we had pledged only 65% of the increment so that so we the developer would only get 65% so that there are no would take longer to pay off. And we would collect increments every year to build up our pooling. So that's, you know, a kind of a strategy that we would use to maximize. Coming. Just to add on to that, I think commissioner question was like. pulling its of its a pool. So when when we want to bring project to use it, if we do bring it separately, okay, that that was yeah. That was what I training missions just add on to that response. Thank So on this slide here and just the stain that we have available rght now that I've identified that will collect by the end of this year, about 5 million dollars redevelopment tif districts that are available for affordable housing projects. And then we do have the upcoming action that you were briefed for the Mary Hall project 2 Million. One. 59 3.82. And then if if that project is approved and we have about 2.7 million dollars remaining then I'm still determining what our polling looks like for 25. If I didn't say I meant to say it. We wait till the dollars are collected. You know, obviously tax increment are based on tax collections. If we don't collect the taxes, then we can't use it. So. And thank you so much for the U.S. To I honestly, I'm just kind of like could have multiple conversations around Tiff 2 continue to try out for we understand just like multiple things that go into it along the lines of bullying for affordable housing, though, could you just talk a little bit about how those projects get in the pipeline? So that's 2.1, project that is being considered for Mary Hall in the future. And those commissions a start like here's and events like how just from a lens how we how we landed for other projects, like how what what is the process to get? That's where you're making a recommendation about. Project to make commission Johnson elected director Goodman, Director Newton, go into more details. But we do have our internal resource team until the pulled tif is listed on that resource sheet along with our other home dollars are cdbg dollars projects when there going to the underwriting process and go through and work with the housing director and apd leadership about once the right time to bring it to resource and make a reservation. And then that reservation is noted. And then that project when it's ready come forward to this body is when done, would actually be, you know, voted on, but But we do have a reservation process. And so that's Mary Hall project brought to resource team discussed internally and then reservation was made. And then it supported by the sponsor. Become commissioner. And this is director new So I have legally change my name and image after the election because it would cause any problems with being able to vote. Learned in Minnesota that trying to change your Social Security number to change your license and it can. It can get messy of eventually going to be definately change and it was some kind liminal spaces that, thank you. But Director probably forget. Apparent rejection. Okay. Commissioner Johnson, that just yeah. Exactly what, Denise. It's a moving. It's a it's a we have a pipeline of projects that we know are coming and we're always looking at various possible sources. Some of the sources have specific requirements. So, you know, if it's cdbg, if it's home, if you know it we look at each project kind of as they come. And we're always kind of every you know, and we've kind of been I know we've been working with you, commissioner to kind of keep you updated You're asking what's up? I look, like now we can do that with any of you. It's like what we know is coming. Sometimes things fall apart. So the net U.S. A funding source that we thought we would be using here will be like we should move that hearing them come in this year. And that will be the best most efficient use of sources. So it's it's kind of living breathing document. And that's that's the way that we manage a liver funding sources to to use the funding most efficiently and effectively. $0.7. And ultimately all come here for approval. Indeed, if it's not approved here, doesn't I think you director given U.S. Is kind working right with right now. But feel that, I also hit, but maybe not just for that but for a variety of reasons. And actually let me know. And change might I have it's going to be a busy post All right. Let's keep Tunica commissioner. So that was the last of that. If And then I have another item on certification. Any other questions or comments from as well. And I would just say to my colleagues, I've been here 8 and a half years now and I'm still learning new things about half. And so I would just really encourage folks to continue asking 2, 0, 1, 1, 0, 3, 0, 1, And even a questions at this table. Every time we see these items because it really is complex, but it's incredibly important for us to get our questions answered today. We specifically structured this presentation bfore a decertification action because we sort of wanted to use this is example of everything that we just talked about and we'll have more of those coming in front of us. But I just don't want folks to feel like we've done that to a one. And now we can't talk about to address questions anymore. With that. Thanks as well. And without accent. Remember to Sr 24 dash one, 74 introduction of Kokomo tif, district certification. Cheney Kerr commissioners. So this is an item that I had talked about last month going to be coming forward to this body, too. Adopt a resolution that would decertify the Culp mobile tip district early. And so this is the introduction to that. The action will be next Wednesday so the Pope mobile to district was redevelopment district that was just it established It was the former Coke or former oil tanks right off of 70th. And 35 and I do there. Mainly 2 properties cope refineries and ExxonMobil. We had grand plans for development on Property. And then ExxonMobil. did want to have on their land. And and so we pivoted and we did develop the Coke side and the ExxonMobil side is now Victoria Park and so currently, there's the 40 acre Master planned park. 195 units of senior housing to write on 7th Street, a special on campus. There's 472 market rate apartments. 13 rental co-opt this. If you market co-op and what classical academy. And this is a map. And so you can clearly see here that more than half of the site is a city park tax. Increment cannot be used for city parks. And so, you know, that kind of lead you to the conclusion that what we probably didn't as many eligible costs as we thought we were going to have and so we had set up that tif - district to put out to build qualifying public improvements. Installation of infrastructure. The city did issue general obligation, tax increment revenue, bonds. And there are some refunding bonds that are still outstanding. The current balance is just over a million dollars. And and that plan had authorized - expenditures, pulling expenditures. So we use 1.3 million to assist development on the 3 site. We have 1.4 million that we've used for affordable housing and has shown on my other side, another 700,000 is what's and what's plants on showing that is available? And then and has stated we are limited on how much we can pool because we do not have enough in district expenditures. It's open causing their we've gotten so Ali and then on just one question on the process in history because I just think this is an interesting sight. An example. So it says that it said I lost it just as I was in reference. It said that at one point the jury acquired it's actually right there. The property through eminent domain for open space. So what rules are we under with regard to cases like that where there's like severe blight or some other reason why we would use that eminent domain process. And just as it this is my first example, I've seen in my time as a council member of like the actual a jury using that tool because I know it's and it's kind of major, serious intervention. So what is the actual is that a statutory process like how would that work with our city policy around that 10 Acre Commissioner Jolly so this was done before there was federal law put in place more or less made it just about impossible for for a city to use eminent domain. So this is pre federal legislation. Yeah. Basically Cessna 2005 or 2006. And I think that. changed later in the 2000. I think there still is a process is just very costly. To do. You this. All say that that trees acquisition through eminent domain was a settlement, right? I mean, ExxonMobil didn't need the property anymore. They just they didn't want it for housing. And so we trying to, you know, not have it be a blight. And the neighborhood. It was it was a settlement. Even though the term eminent domain is Tunica Commissioner I think we could probably have separate presentation with the city attorney's office to kind of bring you up to speed And this right. Almost never never do this. But there there are cases in which it could be a tool. And I think we want bring you kind of a little of an update You know, when and how that could possibly work and why and what would be so that's a little bit of a different topic. But we can certainly get you Riyadh in the city. Trace I appreciate that. And you know, there are severe blighted properties and boards where we are like kind of waiting for the market to solve that problem. And it just fundamentally is not and waiting is not enough. And I'm very interested in how we could become more proactive and what's inappropriate. Policy instead of tools to do that. More to come. Bt just where we have coming fom the top. Thank you, and seeing around the time. I think that would be great. Let's let's make that presentation happen. With the state attorney's office. A whole new year ahead of us, once we get through the budget process. Well, thanks for informational presentation. So we need to start that. Are coming just You're next. Yeah. So. I am. I just wanted to have that briefly. The reason why we wouldn't be able to tough right now is because of a thank you kind of it kind of pull to fund this example because of there was something you briefly said. You said it quite fast. I just want to make sure to catch it. And it was around like not having enough. Units. I think housing there. It's actually collected. 10 acre commissioners. I think this slide here where I speak for about the limitations. So since the development that we anticipated happening to put in infrastructure was only less than half of the site. We did not have enough qualifying in district expenditures. And so since we don't enough qualified in district expenditures that have to be 65% of our class, that limits. What are 35% universes? And so we've collected enough tax increment. Now that doing the math of 65 35 were there, right? So okay. Yeah. Okay. So that's just a lot for like the timing as to why that's coming now versus Correct? Okay. Thank I do not understand that. Can you run that Me one more time as well. 10 acre so. Only wy I know to do this is just kind of with the math. So we've collected say 10 million dollars. 6 and a half of that was eligible in district that 65% 3 and a half can be used for pulled. If we only have 6 and a half million of eligible costs, if we collect one more dollar, we can't use it because only had 6 and a half million of eligible costs in district and we can't use it for pools because we yet. Okay. So continuing on with the cold mobile. So the original, the certification date was 2030. So we'll be closing the district if it's approved next week, 6 years early and as I said, I'm expecting to receive sufficient tax increments by the end of 24 So no future tax in France would be collected from the district once we decertify it. So we do certified effective the end of this year. We will not collect tax increment next year or from taxes generated in 25 and beyond. We can still spend the dollars that we have and we can still spend them, you know, eligible on those pulling expenditures. Like I said, I that we have about 700,000 of pulling available for affordable housing. So Sonic there's a clock ticking on when we have to put that into a project. And so then next the a tree board would adopt a resolution to close the distric early and then to amend our debt service budget. A tree pays the debt service on the bond. So we would amend that budget allocate those dollars. And then there is a companion item at City Council since the city is one that issued the debt. They have to call for the bonds to be redeemed. Solar panels on early and then we also be acting to terminate the pledge. Agreements a tree had pledged the Texan currents to all city bonds. So that's what's planned for the action next week before both bodies. And then next So again, the tree board is the one that gets to approve all of the affordable projects with the pool to so that 700,000 that I've identified is something that would come back before you. I generally don't. A tif district when we bring up pulling I kind of try to do it at the time that its most critical when the funds are being just for cash flow purposes. Perhaps what I could do is I could still continue identify what the pooled sources are that we have just so you know what they are and then, you know, but I generally don't pick a source. And and then I'll just add too, when we do certify a tif district, we no longer tax increment. We are a little bit at risk for petitions and refunds. So that's another reason why I will be kind of monitoring where we where we go with this tiff district in case we have any refunds that are issued because then what the county does is still climb back some of that tax increment they've already sent to us. And so that's what I'll continue to report the activity and the tif district. And when it's to determine that we can no longer spend what we have and we'd have no longer any risk that we're going to have anything clawed back then we'll send the remaining 2 that the company and redistributed back out to the taxing jurisdictions. And it's just to Just to get a fuller understanding. Is there any? Sounds like there's no downside to early decertification. The project costs what it costs, the amount of eligible expenses are what they are. Once we've spent all of that money on those eligible expenses. To your point, there's no value in bringing in additional money because we can spend anywhere else. So there I assume that there's no downside to early decertification. It's just. Necessary. Tenikka commissioner. Yes, I believe there's no downside and it's prudent thing to d as long as we ensure that we're not at risk for, like I said with refunds. But that's just kind of hanging on to the tax increment until we know that they're all to spend and not going to clawed back. We're seeing about pulling this both in terms of not specifying the source is is there a regular in a vote which we get an update on how much pull tough has accumulated from all of our different existing districts to make commissioners. I thought I could do that at the budget time. If that's appropriate you know, I mean, obviously want to project comes forward. I'm requesting pulled Taft for your approval. We could also talk about with the balances are at that time like we do with some of our other sources, whatever whatever works, I think that makes sense. During budget and then right, just letting us know if we use this poll to fund this project here. This is how much we have left Great. Any other questions or comments for my colleagues. Seeing none that. For us for any action today. But this is a preview to next week. Thanks so much as offices, really, really helpful. Appreciate all the time topless you put into these presentations and there's and like anyone who know stuff like you do not go France. In morning London. Time. Don't get any idea just not kidding. Thanks and then can read it at item. Number 3, Sr 24 dash one. 58, a jury apd 2025 budget presentation. Carried over from OCTOBER 9 2024 8 reportedly directed imminent. Charity care Commissioners. We do have a standing item on the agenda for budget update. This is the one week that we really don't have anything to bring. We we finish the presentation last week. We have. Updates and some deeper dives over the next few weeks. But we do anything to that. So today today All right. We will be having budget information coming forward follow ups and all of subsequent meetings address the budget season through DECEMBER thanks. Director. That bings a span of our agenda. So