Agenda - Council - 08/28/2001 - Laserfiche WebLink

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I I I I I I I I I I I I I Councilmember Anderson expresged concern in regards to the transfer of the property if ACCAP so chooses and what would happen with the TIF District. When she originally discussed the issue with staff she was assured that the TIF would not be transferred if the property owner is transferred, but the new draft of the settlement agreement permits the TIF to be transferred. City Attorney Goodrich noted that ACCAP had requested that change. Councilmember Anderson replied that ifACCAP chooses to sell the property she has no problem with that, but the TIF should not go al'ong with the property. City Attorney Goodrich stated that if ACCAP develops a single family housing project they would have to sell them to individual property owners so therefore the TIF would have to be transferred. Councilmember Anderson stated that ACCAP asked for TIF to create an affordable townhome project, but if they sell the property to another property owner then she would not be in favor of using TIF. City Attorney Goodrich noted that ACCAP would not receive any TIF funds unless the project was constructed. Councilmember Hendriksen stated that the settlement agreement does not limit the project to a townhome project so ACCAP could construct a number of single family homes, which would then be tax exempt except for the lot tax. Councilmember Anderson stated that she would be more comfortable with removing the language "without loss of tax increment financing" from item #4. City Attorney Goodrich noted that if the City enters into a TIF agreement with ACCAP, they would have to construct the project as agreed to by the ~ity. Councilmember Zimmerman stated that creating the TIF district is taking money away fi.om the existing landowners because they will have to subsidize children from this housing district. It takes a family having a mother and a father both working and asking them to pay more taxes. For that reason he cannot vote in favor of the settlement agreement. Councilmember Kurak stated that one of the other options presented to the Council was rezoning the property along T.H. #47 to multi-family residential and since the TIF issue is causing so much concern she suggested that the Council consider rezoning the property which would not cost the City any money. Councilmember Hendriksen inquired if the rezoning was contrary to the Comprehensive Plan. City Council/July 24, 2001 Page 9 of 23 -67-