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Mayor Reimann stated that the city worked for 10 years to get the municipal <br />sewer line to the edge of Ramsey; after all that effort, should the city cap it <br />off and not use it? <br /> <br />Marv Eggum replied that the city should cap the line. The city is misleading <br />the people saying services will cost $3000/acre; that cost is for trunk and it <br />will take another assessment to get laterals to hook-up to. Full development <br />of property will take another $20,000-$25,000/acre; property owners can't <br />afford that and the city will own the property by forfeit. <br /> <br />Mayor Reimann stated that the purpose of all these meetings is to find a way to <br />get the improvements without burdening businesses and property owners; tax <br />increment financing provides that opportunity. The city wants to give property <br />owners a tool to make their property more desireable on the market. <br /> <br />Marv Eggum stated that it's useless to help pay for improvements with tax <br />increment financing if the property owners can't afford the costs that go along <br />with it. Stated that he can't sell unimproved property in Ramsey for <br />$5,000/acre much less at $30,000/acre, which is what property would have to <br />sell for to recapture the investment made in developing it. <br /> <br />Mr. Goodrich stated that Mr. Eggum can't say it's the city's fault that those <br />costs for land development are there. <br /> <br />Councilmember DeLuca noted that with Option B the property owners would not pay <br />for utilities until they develop the property. <br /> <br />Mr. Hartley stated that Mr. Eggum's situation does not apply to each and every <br />property in this case. Mr. Eggum's case is that of a developer of raw land <br />investing in streets, curb, gutter, sewer and water to resell the land at a <br />profit. There are properties in this case that are owned and developed with <br />buildings; the costs Mr. Eggum has been referring to do not apply to those <br />properties. <br /> <br />Marv Eggum replied that along with the installation of sewer and water lines is <br />the repair to streets, which will involve constructing them up to standards and <br />with that will come curb and gutter. <br /> <br />Mr. Hartley replied that there would have to be a petition from the property <br />owners requesting blacktop, curb and gutter; Council will consider the request <br />but a petition from the majority of the property owners opposing the <br />improvements would stop the project. <br /> <br />Marv Eggum inquired as to why there is such an urgency to spend these tax <br />increment revenues. <br /> <br />Mr. Hartley replied that if the funds are not used within a specific period of <br />time, they are lost. <br /> <br />Council recessed at 9:22 p.m. <br /> <br />Mayor Reimann called the meeting back to order at 9:55 p.m. <br /> <br />Sp Council/12-2-86 <br /> <br />Page 8 of 13 <br /> <br /> <br />