Tax Increment Financing

In 2015 Jack Hoeschler and John Mannillo challenged the City Administration of Mayor Chris Coleman as to justification for using Tax Increment Financing to fund development in Saint Paul. Jack came up with the following questions:

First sent to John Mannillo from Jack Hoeschler: While it may be necessary to give them a background education as you describe, I suggest that the following questions be part of any letter from them.  

Dear------:

We have heard some statements about the city’s TIF program that we are not sure are true. Would you be so kind as to fill us in on the answers to the following questions:

How many TIF districts are there in St. Paul?
How many are closed?
How may TIF projects?

How many are:
Revenue bond financed?
GO bond financed?
“Pay as you go”?
Contain other debt obligations?
Are any of these districts or projects not paying their obligations according to their terms?
When that happens, is it a default under any outstanding TIF bonds?
Are any of the city’s TIF bonds in default now?
How many of the city’s TIF bonds have been in default and what was the outcome?
Do such defaults count against the city’s bond rating?
What periodic or occasional reports on the performance of the various TIF bonds and districts are given to: The mayor;
The council;
The state;
The county;
The school board;
The rating agencies;
Others?

Are all of these reports available for public viewing?
Where?
Does the city need to obtain any special permission from or provide any special review to the county or the school board before authorizing a TIF project or district?
Have either the school district or the county ever objected to any TIF districts or projects?
What was the original duration of each district or project and have any of them been extended in any way?
Have any of the TIF districts been consolidated or rolled over?
Who is the most knowledgeable person at the city about TIF?
Has anyone ever done any analysis of the city’s experiences with TIF to determine whether and how they were a good idea for the city and the county or the school district?
Are you aware of any such analysis by or for any other Minnesota city?

These questions were sent to the mayor’s office but did not receive a response. We were finally able to meet with the City’s Debt Manager but were never able to receive specific answers to these questions.

Tax Increment Financing still remains one of burdens in Saint Paul.

By John Mannillo

TIF Final Report (Citizen’s League, 2017)