Legal opinion sought for use of downtown TIF funds
May 14th, 2009Can the Gaylord Economic Development Authority spend $279,309 from the de-certified downtown Tax Increment Financing District on a project related to the original purpose of the district?
Gaylord’s Economic Develop-ment Authority, at its meeting Monday night, decided to seek legal counsel with specialization in tax increment financing to find out.
City Attorney Donald Lannoye told the EDA Monday night, in his look at it, that he could not find any “clear authority” that would allow the EDA to do that. “If the City did that, the Auditor’s Office could challenge the City.” He also said that in the past, the City has had tax increment financing problems in the past.
Lannoye suggested that if the City wanted to check further, to check with specialized legal counsel. He estimated this would cost $800-$1,200.
If the EDA could not keep the money, it would have to be returned to the County. Then it would be redistributed, approximately one-third each to the County, school district, and city.
Reggie Edwards, director of Region Nine, suggested that the EDA develop a plan what it would like to do with the money.
Gaylord’s downtown tax increment financing district was decertified the end of 2008.
In other business, the EDA:
• Recommended that the City Council approve a proposal from Region Nine that would includes not only help with the Economic Development Authority, but also with community development and planning and zoning. The proposed contract would provide up to 780 hours of staff time per contract year. This averages out to 15 hours per week and may accommodate eight hours of staff presence per week here, and up to an additional seven hours of staff time spent in Region Nine offices for report writing, planning, research, and other tasks. The cost would be $25/hour for staff time. Mileage would be reimbursed at the IRS rate, with copy expenses at seven cents each for black and white and 15 cents each for color.
• Approved a $1,500 donation to the Minnesota Valley Regional Rail Coalition.
• Approved a letter supporting the South Central Minnesota Wellness Center.
• Have Region Nine employee Brent Pearson to update advertising for the EDA on cable channel 8.
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