Laserfiche WebLink
EDA BUSINESS <br /> <br />Case #1: Defining Redevelopment Area for CDBG Funds <br /> <br />Staff was directed to obtain possible site improvement costs associated with the Chies and <br />Morrell properties. The Chies property cleanup of debris, trucks and equipment is estimated to <br />be $50,000. The Morrell property demolition is estimated to cost $20,000. It should be noted <br />that Tom Sauter currently leases the building on a month to month basis, at a rate of $3000 per <br />month. This lease could be continued until the demolition occurs and could help subsidize a <br />portion of the redevelopment costs. The length of the lease is not defined being that it is a month <br />to month lease but we will assume that the lease will be in effect for 6 of the eligible 12 months. <br />The Chies and Morrell properties ar._~e located within the boundaries of a TIF District and could be <br />added back and partially subsidized with tax increment for previously budgeted expenses. The <br />added expenditures to the district would not create a cash flow problem for TIF District No. 2 <br /> <br />Site improvement costs appear to minimal in regards to the KIH and Debee properties because <br />no buildings will need to be demolished and all of .the equipment currently on the properties <br />seems to be in working order. The KIH and Debee properties are not located within a TIF <br />district and do not have the additional funding sources available for redevelopment. Estimated <br />costs associated with each of these properties are attached <br /> <br />Sullivan provided information in regards to estimated costs associated with acquiring each <br />property separately. Sullivan noted that the Chies and Morrell properties were within the <br />boundaries of a TIF district and that TIF dollars could be utilized to help with redevelopment <br />costs already budgeted within the TIF district. The cash flow for TIF District #2 would not be <br />significantly impacted by the possible added expenditures. Sullivan noted the KIH and Debee <br />properties were not within a TIF district and that overages in estimates could not be assisted with <br />TIF Dollars. <br /> <br />Member Steffen inquired as to the pros and cons of using TIF Dollars. <br /> <br />Sullivan stated that the pros were that there was previously budgeted money in the TIF district <br />that was currently available. Sullivan noted that the estimated cash floW in the district would be <br />able to withstand any additional revenue cuts by the state legislature. <br /> <br />Member Gromberg added that this type of redevelopment activity was exactly what TIF <br />redevelopment dollars were meant to be and should be used for. <br /> <br />Member Anderson inquired as to the impact of the pending state deficit and how it would impact <br />the CDBG funds and the TIF Dollars that could be utilized in the project. <br /> <br />Administrator Norman explained that the state will undoubtedly make cuts. LGA seemed to be <br />an area that has been discussed as a probable cut for the next tax year. Though the cuts will <br />occur it shouldn't remove the current funding sources. <br /> <br />Economic Development Authority / December 9, 2002 <br /> Page 2 of 5 <br /> <br />30 <br /> <br /> <br />