Minutes - Council - 11/13/2012 - Laserfiche WebLink

Home

Motion by Councilmember Elvig, seconded by Councilmember McGlone, due to the fact of an outstanding grant that requires closing to approve the deferral of the development fees related to the plat of COR TWO until the first closing on one of the three HRA lots — Lots 3 -5, COR TWO. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Elvig, McGlone, Backous, Strommen, and Tossey. Voting No: None. Abstain: Councilmember Wise. 7.03: Consider Modification of TIF District 14 City Administrator Ulrich reviewed the staff report and recommendation that it is in the City's best interest to keep TIF District 14 in place until existing obligations are met, totaling $24 million. Motion by Mayor Ramsey, seconded by Councilmember Tossey, to decertify TIF District 14 for any properties not encumbered. Further discussion: Mayor Ramsey stated there is no mistaking the results of the election because the people who won ran on the message that the City should not be involved in development. He noted TIF was created to offset costs developers were usually required to pay and to protect the businesses who built in The COR. However, "the people spoke" at the recent election to not have the City involved in private development so there was no reason to keep TIF District #14 intact. Councilmember Backous stated he had seconded a similar motion at the last meeting and agreed the City should not be in the private development business or compete /manipulate the free market; however, he felt it would be disrespectful to consider decertification of TIF District #14 before the new Councilmembers are sworn in. Councilmember Backous stated he would support this effort in January once the new members, who are duly elected officials, have a chance to state their position. Councilmember Strommen agreed "the people spoke" in the recent election that the City needed to get out of the development business but that does not mean "pulling the plug" tomorrow. She found this to be a strategic issue the new Council needs to address once it is seated in January. Councilmember Strommen stated the issue of TIF is nested within that larger strategic discussion, which she welcomes. She supported staff gathering additional information, bringing forward options for modification of the TIF District, and a comprehensive financial analysis so the Council can hold deliberate and thoughtful discussion once the new members are seated. Councilmember Tossey stated he had made the motion to decertify at the last meeting but it was not supported by a majority. He believed that it was still the right thing, noting TIF can become a "political football." He felt Ramsey should compete with other cities by keeping its tax capacity lower to attract developments. Councilmember Tossey stated the way to "starve the beast of government- controlled development" is to cut the HRA levy in half and decertify TIF District #14. He felt TIF plays favorites in choosing one business over another and that TIF should be eliminated Statewide. Councilmember McGlone stated he spent the most time of any staff or Council member at the Capitol to put TIF District #14 and design build authority into place. He stated if this Council or next year's Council thinks Ramsey should be out of the development business, it should also be out of the TIF District business. He stated that he has more TIF knowledge than any "newbie." Regarding the comment that "the people spoke" at the recent election, he would question the pamphlet distributed by "Citizens for Responsible Government," a pact that supported those who City Council / November 13, 2012 Page 6 of 8