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I I I i I I ! I I I. I I I I I I I I I Mr. Gree~n~.~'rg ireferred to that area surrounding the railroad tracks and inquired if %ax i~c~e/~ent financing could be used to improve the railroad; would railroads be consi~ered!a publ~c utility? Mr. Nelson replied that the city cannot outright finance improvements to the railway, but .~he city might be able to do a land write down for the potential developer, thereby freeing some of his cash outlay with which he could use to put in an improvement like a railroad spur. Mr. Zimmer~anlinquired if the city can buy raw land and improve it with streets, sewer an~ water and sell it back to the developer? Mr. NelsOn replied that tax increment can be used for land acquisition by way of an out~ight purchase or condemnation. Mr. Nelson al~o stated that tax incrementing allows the city to gain better control of critical planning areas. Mr. Lichter inquired as to limitations put on Industrial Revenue Bonds. Mr. Nelson replied that a city can issue up to $10,000,000 in industrial revenue bonds for industrial projects within the city. Mr. Greenberg stated that if the City decides to go with tax increment financing, should the tax increment districts be set up right away? Mr. Nelson rgPlied that he would advise the City not to set up tax increment districts~right away; if you set it up and nothing happens, it evaporates. The breast .outside boundaries of a tax increment project can be set. When se~t!ngluP a tax increment district, the plans have to be submitted to the County a~d the School Board. The County and School Board have a certain amount of ti~e to get back to the city with their comments; essentially, it is a tw~ month process.from the time you have an interested developer until you set the tax increment district up and freez the assessed value. You can't gO in.~fter a project is underway and make it a tax increment district. Improveme~tS~that received building permits three months prior to setting % up the ~istrict go into frozen value rather than captured value. As soon as the city ~ets an inkling of a business that wants to come in, that is the time to act. Mr. Nelson also stated that there is no minimum size to a tax increment district, The tax increment project area should be broad enough to have enough area to spend money on and narrow enough to satisfy statutes. Mr. Raat£kka brought up the subject of tax increment housing districts. Mr. ~elison s~ated that housing does not kick off a whole lot of increment and they cr6ate more public costs; not a lot of tax increment is done on single fami.~y dwellings. ADJOUKNM~NT Mayor Gamecadjourned the meeting at 9:35 p.m. RespectfUlly submitted, Sylvia'Frolik ttac en Lloyd G. Schnelle City Administrator C/March 14, 1984 Workshop Meeting