TIF is authorized by state law and enables the HR to capture the increased taxes to finance development that otherwise would not occur.

All property taxes generated from other tax levies would be sent to the applicable taxing jurisdictions on the full value of the development which includes market valuebased taxes for the school district and state levied taxes for commercial properties.

The remaining 35% of the collected tax increments are for admin and pooling for affordable housing.

And I know that one of our discussion points today is going to be that um, the decisions we make about that gray part of the pie chart pooling and sort of things that go beyond just helping the project happen.

The school district is unique in that they they get to determine what their um tax capacity base levy will support for school operations. and then the state of Minnesota provides the difference.

So, just to say that another way, if a property's value increases by $100,000 because of the development, the school district's levy takes into account that new $100,000, the total market value, even if it's some of it is going into a tip district, and gets that amount into their levy referendum.

A redevelopment tiff district has a limit of up to 35% for a pooling which includes admin costs and housing tiff districts are similarly limited although expenditures for qualifying housing projects are considered within a tiff district boundary even when they are outside um of the limit.

So for a redevelopment tip district, the maximum pooling is 35% and at least 10% of that would have to be for affordable.

So it's of what the tax increments we collect is 35% of what we collect we can then spend on admin and pooling for affordable housing. The other 65% of what we collect has to be used for the project in the tiff district. So it has to reimburse the developer for their costs or it has to actually you know uh pay pay for costs of the project in the tiff district.

All tiff districts have a statutory length for collections which is 26 total years for housing and redevelopment tiff districts. State law, however, limits the spending within the TIFF district that could result in early descertification of the district.

So, if we've collected $100, um, we would have to spend or um, yeah, $100 we would have to spend $65 of that that we've collected in the district for qualifying project costs. Um, and so that if we only had $63 that qualified, we would have $2 over what we could keep.

So the a property owner has the right to petition the value that the county assesses, right? So they assess they send that out in the tax statement in March. They'll send the most current assessed value for the following pay year. Every every property owner has the opportunity to petition that value.

So when a petition settles, that means a refund has been issued. When um it's a pending petition, that means the county holds back tax increments because they think they might um send a refund before our next collection.

I'm noticing the difference in the amount captured from redevelopment tip districts versus housing tip districts, even though we have fewer redevelopment than housing tip districts. I'm wondering if that is because redevelopment tip districts just end up be being more valuable because they're typically taking a blighted property and creating something some new um either market rate or commercial property.

I would agree with your statement. Um I think the main driver in um the large redevelopment um tiff um collections is we have some very large tiff districts and those so Minnesota event tiff district in downtown um that's you know 20% of our total capture.