Ramsey County commissioners heard more details from St. Paul officials Tuesday on the city's plan to combine and extend the duration of four existing special taxing districts to raise money for improvements along the Central Corridor light-rail line.
The city wants the county's support as it makes its pitch to legislators. County commissioners wanted to know how the money will be used and how the extension affects taxpayers.
Improving the look of University Avenue is essential to future economic development along the line and could generate more revenue than the county would get from its share of the taxing district proceeds, city officials say. The 11-mile line from downtown Minneapolis to downtown St. Paul has a cost of about $914 million.
If the county supported the move, it would mean that about $1.9 million a year would stay off the county tax rolls until 2029. The taxing districts currently are set to expire by 2016. Put another way, the owner of a $200,000 house in the city of St. Paul would be giving up a $24 decrease in their annual property taxes. The decrease for a suburban owner of a $200,000 property would be $7.
The city plans to sell $37 million of bonds to pay for the improvements and then to pay the bonds off with the proceeds from the taxing districts. Those proceeds are expected to be about $70 million by 2029.
The city's three priorities for the money are to:
• Improve the streetscape ($27.5 million).
• Replace lost parking on University ($4.5 million).