01/17/11 Work Session - Laserfiche WebLink

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Development Manager Lazan stated if the HRA is comfortable with the parking, the tax issue is on the table for discussion. He noted the HRA can move that issue to closed session along with discussion of the sale price. Pastor Skaff assured the HRA that everything is on the table but their Board of Directors does not want to be a precedence setter of falling into the role of paying taxes. He noted the YMCA Legacy Campus, or Charter School would not be expected to pay taxes. Pastor Skaff stated they want to find a win -win in other ways so the City feels it is getting its fair share. He stated Northgate Church will bring synergy and a quality performing arts center to The COR and they will negotiate through the process and provide architectural drawings so the HRA can also sell it to the public. Commissioner Elvig stated he appreciates their approach and asked about concerns with a nonprofit in a TIF District. HRA Executive Director Nelson explained it would affect the long -term proforma since a church is not a taxable entity. She stated she looked at the Zoning Ordinance and in COR 1; religious institutions are a conditional use. City Administrator Ulrich noted it is a 25 -year TIF District and the odds that the whole 130 acres will be fully maximized are low. If the HRA's strategy is to spur development and get other taxable properties built as accessory to this use, he felt it was a reasonable argument. Bill Dorn, attorney representing Northgate Church, reminded the HRA it will be able to impose covenants on the property to assure the other uses will materialize and there will be enforceability. Commissioner Backous again asked if this will be a church with a performing arts center or a performing arts center with a church. He also asked if they will have revenue - producing uses so this could be perceived as a scheme around taxable versus non - taxable status. Pastor Skaff stated they plan to build a church and want the facility to be used by the public as much as possible. The revenue received by those uses would just offset operational costs and not be a revenue generator or financial income to offset mortgage payments. Commissioner Tossey asked about Pastor Skaff's earlier comment that he had identified churches by city halls while visiting eastern states. However, this building will not have an exterior cross or spire to create the identity of a church. Pastor Skaff stated he was commenting that the faith component was the synergy of the community. Development Manager Lazan pointed out that one of the key perspectives is that this is a use that creates separation between a "strip mall fake downtown" and more of a community component with a tremendous downtown character. Housing and Redevelopment Authority / January 17, 2012 Page 5 of 9