City Council Supports Creating Gravel Mining Area TIF

As an additional financing tool, the passed a resolution recently to support special state legislation for a tax increment financing (TIF) district in a portion of the gravel mining area (GMA).

“We believe the additional financing tools are needed to partially reduce the cost of assessments for the public infrastructure improvements such as ponds, sewer, water, storm water and other overall assessments as the cost to re-develop the GMA is extremely high and acts as a major roadblock to development,” Maple Grove Community Development Director Dick Edwards Dick Edwards said in a memo to the council.

The city hopes for the TIF request to be approved during the 2012 Minnesota Legislative session.  

In the 1990’s the Metropolitan Council, according to the memo, asked the city and the gravel mining land owners to “hold back development” since sand and gravel was “highly important” to the transportation plans in the area.

“This delay in development request was honored, but now portions of the GMA are ready but the costs to remediate the land as well as public improvements stated has gone up greatly,” Edwards said.

By creating the TIF district, the city hopes to setup individual project areas as developments proposals are brought forward and attract industrial and commercial development.

“This special legislation will be a strong catalyst for redevelopment of the GMA,” Edwards said in the memo, stating legislation can “develop thousands of jobs.”

The resolution of support to establish a tax increment financing district in a portion of the gravel mining area passed at the Feb. 6 Maple Grove City Council meeting as part of the consent agenda.

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