Minutes - Council Work Session - 11/13/2012

Home

Mayor Ramsey stated the Council needs to be aware it is $68 million but TIF is an arbitrary number and it could be much higher depending on how fast development happens and how much increment is captured over 25 years. He noted it was stated there is $8 million for incentive of private projects but the City has a spending plan it agreed to when it got the legislation for this District that can be modified without asking for Legislature approval. There is no law saying Ramsey cannot do that and that is a danger in this TIF District. Mayor Ramsey stated he is concerned about this TIF District since the citizens of Ramsey spoke very clearly in the last election when the people who ran said the City should not be involved in this development. He stated he wanted discussion on this issue to be at the Council level when it is on camera. Councilmember Strommen stated she agreed this is a central issue that needs to be addressed but the Council does not need to rush to that conclusion and she hopes the intent is not to make a political statement that would be disingenuous to the residents. Mayor Ramsey stated he and Councilmember McGlone had worked very hard to get this TIF District and this discussion needs to be brought up on camera. Councilmember Tossey stated this is why he did not think TIF was a good idea; it is a "political football." He objected to playing with people's money and supported decertifying the TIF District so the School District and Anoka County can each get their taxes. He felt enough is enough. 2.02: Consider Lease Agreement with Independent Auto Service, Inc. for use of Cold Storage Area; and Consider Sublease Agreement with First Choice Towing (6745 Highway 10) Management Analyst Brama reviewed the staff report and presented the terms of the proposed sublease agreement with First Choice Towing. He noted this item is on tonight's Consent Agenda. Councilmember Wise asked about the square foot cost of the lease with Denny Sharp. Management Analyst Brama stated the previous lease was a higher per square foot charge for this property than the property to the east but that conflicts with economic reality because the other building is in better condition and has a higher economic value. So, staff flipped the rates to better reflect the market. Management Analyst Brama stated he had also worked with Anoka County on the tax per square foot difference and found one was taxed at a higher rate, again being different from the economic reality since one building is in better condition than the other. He indicated the lease is about $1.90 /sq. ft. on this property and is now at $1.75 /sq. ft. The rate for the other property was flipped with this one to better reflect the economic reality. Councilmember Wise asked if staff sees any problems that could come up with a sublease on a City -owned property. City Attorney Goodrich advised the lease provides that the tenant can sublease. The City has the right to review but if the uses are consistent with the main tenant and lawful commercial uses, City Council Work Session / November 13, 2012 Page 3 of 10