Minutes - Council Work Session - 05/13/2014

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Ms. Kvilvang explained that residential properties are coming back strong and they will have a minimal draw on the tax. The VA, Allina, and Residence at The COR have increased the value of the TIF. The Residence at The COR apartments are 72% leased. With these property values and with the parcel removal, taxes in the amount of $275,000 will be generated. Ms. Kvilvang stated she does not recommend changing the fiscal disparities election. She suggested waiting until more is known about future development before changing that election. She pointed out this would be a one -time change. It was noted a public hearing for formal adoption of the TIF Plan for District #14, as modified to reflect the reduction in parcels, is scheduled for the Council's May 27, 2014, meeting. 2.02: Review of COR Expenses and Funding Sources and Recommendation of Reimbursement of City Funds via Land Sales and TIF #14 Reimbursement to Draft a Reimbursement Policy Finance Director Lund reviewed the staff report and explained this is a proposal to reimburse City Funds because those funds could be used on various projects. She explained that TIF #14 funds can only be spent within that district. She referred to the Council packet for a list of needs within the City. She further explained that the land proceeds would pay for sewer and water. It is a liability for a City to have loans. Therefore, the reimbursement would alleviate the amount of loans. Councilmember Riley said he agreed that the land proceeds should pay for sewer and water. He clarified that it could be used for utilities, and streets as well. Finance Director Lund confirmed and pointed out the funds could not be used for public or government buildings. Finance Director Lund stated this item will be brought forward at the next City Council meeting on May 27, 2014 for adoption. 2.03: Consider Lease Concept with Northern Starz Children's Theatre Company: Old Municipal Center Assistant to the City Administrator Patrick Brama reviewed the staff report and request of Northern Starz Children's Theater Company to lease space in the old Municipal Center. He noted that the organization would like to develop consistency in their program as far as rehearsal space and times. Their current space is shared with other organizations, which restricts the times they have for rehearsals. He pointed out that this would not be a permanent commitment by the City. Rachel Bohnsack, owner of Northern Starz Children's Theater Company, explained the organization rents space in Northgate Church. There has been a great response from the City of Ramsey. She said the program is for grades K through 12, and stated they are more of an educational theatre. They have classes in a variety of instruction. She explained she now uses City Council Work Session / May 13, 2014 Page 2 of 6