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interest payments during that interim period from project initiation to <br />the first tax receipts, the city may have to increase the size of the bond <br />issue for capitalized interest. <br /> <br />Bob Muller stated that he is oonsidering building a strip center in an area of <br />Ramsey for which public improvements are not planned and inquired as to how <br />tax increment financing would benefit his situation. <br /> <br />Ms. Waelti stated that in Mr. Muller's case, tax increment financing could be <br />used for lighting, signage, landscaping, sidewalks, public parking (or soil <br />preparation for private parking), and grassy areas. <br /> <br />Councilme~ber Cox inquired as to how tax increment financing can be used for <br />public services such as a bridge crossing or YMCA facility, which would <br />attract development to a certain area. <br /> <br />Ms. Waelti replied that tax increment financing could be used for a community <br />center that would be leased to the YMCA for instance. The city cannot build a <br />building in which the city will conduct city business. <br /> <br />Councilmember COx inquired if the city can let funds accumulate and build a <br />community center a couple of years down the line. <br /> <br />Ms. Waelti replied that accumulating funds for future use is allowed but the <br />problem with waiting is that the community center may be needed at an earlier <br />time to make the development project more viable. <br /> <br />Councilmember $chlueter inquired if there is a tim~ limit on development of a <br />parcel in the tax increment district. <br /> <br />Ms. Waelti replied that if nothing happens on a parcel in 4 years, the parcel <br />is dropped frc~ the tax increment district; if interest in the parcel occurs <br />after it's deletion, that parcel can be read~itted to the district. <br /> <br />Ms. Waelit also noted that economic development districts (for new <br />develo.~ment) are set up for a time period of 8 years; tax increment districts <br />for oommercial redevelopment and moderate income housing are set up for a time <br />period of 25 years. <br /> <br />Mr. Jack Ippel referred to Ms. Waelti's earlier comment regarding tax <br />increment financing running for as long as it take to pay for the public <br />improvements and inquired if that doesn't conflict with her statement <br />regarding redevelo~mentand housing being set up for 25 years. <br /> <br />Ms. Waelti replied that a tax increment project area can be set up for 25 <br />years; the tax increment districts within the project area run for as long as <br />it takes to pay of the improvements to that specific area. <br /> <br />Councilm~ber COx inquired if areas already with some development can be <br />included in tax increment districts. <br /> <br />Ms. Waelti replied that if there is ongoing construction, the parcel cannot be <br />captured and included in the tax increment district if the building permit was <br /> April 30, 1985 <br /> <br />Page 3 of 5 <br /> <br /> <br />