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Marv Eggum stated that it doesn't do the city any good to spend two million for <br />for sewer and water if he, Leonard Spone and other large landowners can't <br />afford to develop it. Mr. Eggum inquired as to how many building permits were <br />pulled in Ramsey in 1985 and what was the absorption rate of the industrial <br />area. <br /> <br />Councilmember Sorteberg stated that there was probably 150 new construction <br />permits pulled. <br /> <br />Councilmember Cox stated that the absorption rate in the industrial area was <br />very little. <br /> <br />Marv Eggum inquired as to what makes the city think it can put in a 2 million <br />dollar project and the land will develop at a faster rate than what it is <br />costing to pay the interest ticket on the project. <br /> <br />Councilmember Cox stated that commercial businesses can't get loans without <br />sewer and water. <br /> <br />Marv Eggum replied that he hasn't had any problems getting loans for <br />development in Shakopee that has no sewer and water. <br /> <br />Councilmember DeLuca stated that banks are reluctant to make loans to good <br />sized commercial developments unless they are serviced by sewer and water. <br /> <br />Marv Eggum stated that chances are the city will not collect the taxes on Anoka <br />67 because the owners will not pay $40,000/year; the rest of the large property <br />owners will probably follow suit and the city won't have any taxes coming in. <br /> <br />Mayor Reimann stated that there probably will be a percentage that can't pay <br />the taxes and lose their property but history shows that development comes with <br />sewer and water. Mayor Reimann inquired if Ramsey should wait another 20 years <br />and let the other communites have all the growth; tax increment financing may <br />not be around 20 years from now to help defray the costs. <br /> <br />Marv Eggum stated that if he has no choice and the project goes in, he would <br />choose Option B for financing. The new tax law changes will curb commercial/ <br />industrial development and that will impact the sewer and water project. <br /> <br />Mayor Reimann stated the city is saying it has a tool available to help with <br />the cost of sewer and water improvements; the property owners have the tool to <br />stop the project. Council would like to see the property owners take advantage <br />of the financial assistance. <br /> <br />Marv Eggum stated that the city spent a lot of money on this project so far and <br />they should have spent some money on a market study. <br /> <br />Mayor Reimann stated that if there are transportation improvements, i.e. Rum <br />and Mississippi River bridge crossings, Ramsey's improved industrial area will <br />be marketable at a profit. <br /> <br />Motion by Councilmember Cox and seconded by Councilmember DeLuca that Option A <br /> Sp Council/12-2-86 <br /> <br />Page 12 of 13 <br /> <br /> <br />