Agenda - Council - 11/07/2011 - Laserfiche WebLink

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to them for four years. He said he requested in writing that the building will remain exempt until such time as the use is changed on the property. That allows the City to apply what would have been used for taxes to the debt. Councilmember McGlone said he disapproved. He explained in 4 years' time, it is likely a renter could be found to pay for the improvements themselves. He said none of the revenues go back to the RALF fund so the City is shorting itself and the taxpayers. Councilmember McGlone noted the building is slated for demolition in the future, so considering improvements makes no sense. Councilmember Wise agreed with some of Councilmember McGlone's comments. He said the building has been here a long a time and if fire suppression can be installed, it could possibly be leased when the church is done. Councilmember McGlone stated the building does not need improvement to be leases. Economic Development/Marketing Manager Backman stated this particular property has been vacant six years. He has approached businesses for this building and there is now an opportunity to lease the space, and generate $20,000 or more per year. Councilmember Strommen stated if the space can be used as an incubator space for the church, it seems better than having the building sit empty for the time being. City Administrator Ulrich explained if the RALF property is getting leased revenue, the revenue would go to the RALF program. This could make it a more valuable property after the four years is up. The alternative is to deny the lease and look for a taxpaying entity. He noted the priority has been to get the properties to pay taxes and there is a concern about the appearance of the building and having the building occupied would improve the appearance. Councilmember McGlone stated he thought all the points the City Administrator made were disadvantages. The use next door is perhaps why it hasn't been leased for six years. He said he would rather find a taxpaying entity but if the church paid for fire suppression, he would approve the request. He noted he does not consider that building to be a problem. Councilmember Backous stated there are huge advantages to having a church in the community and asked about the parking situation. Economic Development/Marketing Manager Backman responded that based on the information provided and discussions with staff, there is sufficient parking for what is proposed. Councilmember Backous pointed out this would be taxing on the police and fire departments. The best -case scenario is breaking even. He asked what the remedy would be if they broke a four year lease after two years. Economic Development/Marketing Manager Backman explained the parent church is the United Methodist Church of Anoka and their board has agreed to this start up. City Council Work Session / October 11, 2011 Page 3 of 6