12-12-2023 EDC Agenda PacketA.5:30 P.M. - CALL TO ORDER
B.APPROVAL OF AGENDA
Commissioners may add or delete items at this time.
C.APPROVAL OF MINUTES
C.1 Approve Economic Development Commission Minutes of November 14, 2023.
D.VISITOR PRESENTATIONS
E.DISCUSSION / GENERAL BUSINESS ITEMS
E.1 Tax Increment Financing - Public
F.DIRECTOR'S REPORT
G.ADJOURNMENT
AGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
TUESDAY, DECEMBER 12, 2023
MAPLE ROOM, 7700 MARKET BOULEVARD
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Economic Development Commission Item
December 12, 2023
Subject Approve Economic Development Commission Minutes of November 14, 2023.
Section APPROVAL OF MINUTES Item No: C.1
Prepared By Amy Weidman, Admin Support Specialist File No:
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
Staff recommends that the Economic Development Commission approve the November 14, 2023
Commission minutes.
ATTACHMENTS
EDC Minutes dated November 14, 2023
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CHANHASSEN ECONOMIC
DEVELOPMENT COMMISSION
REGULAR MEETING
NOVEMBER 14, 2023
Vice Chair Zurek called the meeting to order at 5:30 p.m.
MEMBERS PRESENT: Vice Chair Duke Zurek, Chris Freeman, Stacy Goff, Luke Bame,
Cohen Lee
MEMBERS ABSENT: Chair Eric Anderson
STAFF PRESENT: Samantha DiMaggio, Economic Development Manager
PUBLIC PRESENT: None.
Commissioner Freeman moved, and Commissioner Lee seconded to approve the agenda. All
voted in favor and the motion carried unanimously with a vote of 5 to 0.
APPROVAL OF MINUTES:
APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED OCTOBER
10, 2023
Commissioner Lee moved, and Commissioner Goff seconded to approve the Minutes of the
Economic Development Commission meeting dated October 10, 2023, as presented. All voted in
favor and the motion carried unanimously with a vote of 5 to 0.
DISCUSSION/GENERAL BUSINESS ITEMS:
1. Development of a Three-Year Economic Development Plan
Economic Development Manager Samantha DiMaggio reviewed the draft of the three-year economic
development plan and received feedback from the commissioners. The draft plan includes
information on the current and past economic conditions in Chanhassen as well as a SWOT analysis.
ADJOURNMENT:
Commissioner Freeman moved, and Commissioner Lee seconded to adjourn the meeting. All
voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic
Development Commission meeting was adjourned the meeting at 6:50 p.m.
Submitted by Samantha DiMaggio
Economic Development Manager
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Economic Development Commission Item
December 12, 2023
Subject Tax Increment Financing - Public
Section DISCUSSION / GENERAL BUSINESS ITEMS Item No: E.1
Prepared By Sam DiMaggio, Economic Development Manager File No:
SUMMARY
On August 8, 2023, the Economic Development Commission held a training on Tax Increment
Financing (TIF), a financing tool meant to support local economic development, redevelopment, and
housing development that would not otherwise occur without assistance. The EDC should now discuss
the best way(s) to educate the public about what TIF is and how it works.
BACKGROUND
Tax Increment Financing (TIF) is a financing tool meant to support local economic development,
redevelopment, and housing development that would not otherwise occur without assistance. As its
name suggests, TIF uses the incremental property taxes, or “tax increments,” generated by the increased
taxable value of a new development to help finance qualifying costs.
TIF is not a tax reduction; taxes are paid on the full taxable value. The original taxable value continues
to be part of the tax base that supports the tax levies of the city, county, school district, and other taxing
jurisdictions. The new, additional value from development activity is “captured” from the tax base for
the duration of the TIF district. After the TIF district is terminated, or “decertified,” the captured value
becomes part of the tax base.
Minnesota law allows political subdivisions—cities, counties, school districts, and towns—to abate
property taxes in order to promote local economic growth. Minn. Stat. §§ 469.1812-469.1815.
Economic development property tax abatements differ from traditional abatements where the valuation
of the property, its property taxes, or its costs, interest, or penalties of property taxation are reduced. An
economic development abatement allows a political subdivision to expend money to benefit a property
in one of a number of ways, including reducing property taxes, deferring payment of property taxes, or
spending the money directly on improving the property. A political subdivision will often grant an
abatement pursuant to an abatement agreement with the landowner; in exchange for the abatement, the
landowner agrees to develop the land in a way that will promote local economic development.
DISCUSSION
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RECOMMENDATION
As this is a discussion, no formal action is necessary.
ATTACHMENTS
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