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EDA reviews TIF policy, accepts 2024 annual report
Summary
The EDA held an educational briefing on Tax Increment Financing (TIF), including how TIF affects tax base and school-district shares, and discussed that any TIF district must pass Ellers' underwriting and the statutory 'but‑for' test; the board then accepted the EDA's 2024 annual report and members report.
At the Feb. 19 meeting staff provided an educational overview of Tax Increment Financing (TIF) and how a TIF district would work for downtown redevelopment. Staff said the proposed Northshore project is expected to move toward a TIF application and that Ellers, the city's financial advisor, would perform underwriting and confirm whether the project meets statutory tests required for a district.
Staff explained that property currently owned by the EDA is tax‑exempt while in EDA possession, and that creating a TIF district would instead create a tax base that can generate a fee for the district; in some cases, the total TIF-related revenues can exceed what a standard tax base would produce during the life of a district. "When we talk about TIF ... the income limits that are typically thought of with TIF are actually our market rate," staff said, noting the city's market and income mix in St. Francis.
Commissioners asked several practical questions: whether a long TIF term (up to 26 years) was allowed and common, and how the school district's share was affected. Staff said the school district continues to receive its portion of property tax and that Ellers would model the revenue and term needs; any term up to 26 years must be justified through underwriting and the 'but‑for' test.
Separately, staff presented the EDA's 2024 annual report and noted the EDA continues to hold four properties, used Placer AI for market analysis, supported new openings such as AutoZone and a new clinic on Bridge Street, and is tracking the Vista Prairie project as it leases up. The financials in the packet were unaudited and staff said they will be finalized following the audit process.
A motion to accept the 2024 annual report was made, seconded and carried. Commissioners also accepted the members report and completed routine officer appointments earlier in the meeting. Staff offered to schedule a follow‑up session to walk through bylaws, EDA structure and the TIF application process with newer commissioners.
Votes recorded in the transcript are described as carried or 'all in favor' for routine items, but the record does not supply precise numerical tallies for each motion.
