Cliff Buchan
News Editor

As the city of Forest Lake Economic Development Authority board takes preliminary steps for a new downtown development plan, it learned an important fact this week.

Based on existing tax-increment financing districts now on the books, the EDA could have as much as $7.5 million in TIF surplus dollars to leverage products and improve infrastructure.

City TIF consultant Dan Wilson delivered that news during a regular meeting of the authority on April 23. Wilson’s appearance is tied to an EDA effort to begin a visioning process for the city and what the EDA may be able to do.

Wilson emphasized that the $7.5 million figure was an estimate but in fact could be even larger if current projections end up being conservative. His report came during a recap of the 25-year history of TIF districts in Forest Lake.

The long-term TIF surplus projection is based on the full terms of the two existing districts that are in place through 2015. The project also takes into account existing debt service on the $5 million bond issue in 2002.

The $5 million issues was used to finance north and south-end public improvements along E. Broadway Avenue, including the redesigned municipal parking lot. Some funds were also used in concert with the Lakeside Memorial Park redesign.

The revenue in the TIF fund comes from property tax dollars on parcels within the district that are recaptured to pay back existing EDA projects and build surpluses for future projects.

Once the TIF districts expire or are decertified by the city, the parcels return to a regular property tax paying status.

The visioning session was suggested by Mayor and EDA President Stev Stegner earlier this month and was supported by Chip Robinson, executive director and city administrator as a means to update the now 10-year-old downtown development planning guide.

Robinson and Doug Borglund, community development director for the city, explained this week that the EDA process could come in partnership with the ongoing city effort to redo its overall comprehensive plan for the city.

When the city staff has completed requested information requests that include copies of past planning documents and business inventory lists, the visioning session will be scheduled. Robinson said a three-hour session in May or June might be doable.

Although the city has two operating TIF districts, they in essence have been merged. Last year saw the Everton Park industrial park district west of I-35 and the downtown TIF district combined in order to enable the EDA and city to use surplus revenues from both districts for eligible projects downtown.

Wilson said there have been 13 modifications to date of the downtown district and more would be necessary as the planning scope for that area of the city changes.

He added that over time the state has become more restrictive in how TIF dollars can be used and that has limited options for cities like Forest Lake.

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