Minutes - Council Work Session - 03/16/2004

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at the 60/40 split. If no development occurs adjacent to the pipe the developer would lose the six million dollars. Councilmember Zimmerman inquired if the area would consist of single-family housing. Assistant Public Works Director Olson responded in the affirmative. Mayor Gamec expressed concern with the demand coming from landowners that want to sell their land and with the commercial node. City Administrator Norman indicated Comprehensive Plan changes are required. He distributed a plan that outlined the five different scenarios that could be followed. He explained staff has laid out the pros and cons and did not come up with a recommendation. This is a policy decision for the Council. Councilmember Elvig stated the goals the Council determined in the Five Year Strategic Plan have to do with growing Town Center commercial components in a manner that generates revenue in excess of debt service requirements, growing the park system, advocating to other agencies to grow some of their transportation systems, and the implementation of a planned urban development opportunities area. These are all goals the Council agreed to in the next five years. When looking at the goals he also looked at the City tax rate fluctuation, and the first goal of not exceeding the generated tax revenue in excess of debts servicing for Town Center. When looking at the fiscal impact study showing where the revenue is being generated over the course of the next ten years, in the next three years 80 percent is basically new development in this opportunity area that generates the taxes, fees, and permits that helps pay for the Town Center. He broke down the budgets and fees, in 2005 to 2007 in the new development area and there is 3.8 million dollars in fees and taxes. In 2008 to 2010 there is another 5.74 million dollars generated for a total of 9.54 million dollars. He stated if they do not move forward with all seven goals at one time they will need to slow down Town Center or they will not have the cash to do some of this. Furthermore, they will not be able to support Town Center if they do not have the rooftops. Also, they have the opportunity with the developer to put in six million dollars in infrastructure free of charge to drive the pipes down some of the drainage ditches. This saves them money in digging out the drainage ditches that they have been told they have to dig to get the drainage back into the proper scenarios in Ditch 66. He stated this is a plan they have to very seriously look at and in his opinion implement. If there is a perceived conflict of interest he will have to deal with that in his own manner. He does not have a conflict of going up to the northeast, but he thinks that is foolish because it actually costs them more than going with both areas. He stated in the northeast when he was campaigning, one of the biggest things was that people did not want to lose the commercial node. They have now lost the hardware store, a couple of stylist shops, the bank, the video store, and potentially now the whole anchor of it, which is LeTourneaus. That is something the EDA has City Council Work Session/March 16, 2004 Page 3 of 7