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Inver Grove Heights EDA backs council discretion to return about $4.3 million in TIF funds to Dakota County
Summary
The Economic Development Authority voted to support whatever action the city council takes on returning roughly $4.3 million in tax‑increment financing funds from a decertified district to Dakota County for redistribution; council retains final authority.
The Inver Grove Heights Economic Development Authority voted Monday to support whatever decision the city council makes about returning tax‑increment financing (TIF) dollars from a decertified district to Dakota County for redistribution.
Director Amy Hov told the EDA the district was created in 1991 by special legislation to spur development at the southeast corner of Interstate 494 and Highway 52, and that it automatically decertified on Dec. 31, 2019 under state statute. The remaining tax increment has been held in fund 453, Hov said.
Hov described the city’s options for the remaining funds: use them for affordable rental housing anywhere in the city (with either 20% of units reserved for households at or below 50% of median income or 40% at or below 60%), or return the dollars to Dakota County to be redistributed among the applicable taxing jurisdictions — the city, the county and the school district. "The total amount that we have is just over $4,300,000. The city would receive about $2,400,000 back," Hov said.
Hov said the city transferred administrative authority over the TIF fund to the EDA in June 2020 and adopted an affordable‑housing development program to administer loans and grants. She told the board there are no active loan or grant applications under that program.
During discussion, Commissioner Scales said he supported returning the funds to be used for current taxpayer needs rather than leaving the money unused: "I think this is a great option for us to be able to actually put it towards something useful — current taxpayers." Commissioner Takach said he disagreed and urged the city to preserve the balance for affordable housing measures, noting the topic should be discussed in more detail at a January work session.
The president moved that the EDA adopt a resolution supporting whatever redistribution decision the city council reaches; the motion was seconded by Commissioner Scales and passed. Hov and staff said any letters to be read into the public record would be handled when the council takes its action. The council meeting to consider the council resolution immediately followed the EDA meeting.
The EDA adjourned with no further public comment.
