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assessment if they can't afford to develop and market the property. Mr. Spohn <br />stated that he doesn't see how he can sell his property, especially with 300 <br />acres to the east that is better than his land because it has roads and a <br />railroad overpass, unless there are deferments until at least a portion of the <br />property is developed. Mr. Spohn stated that in it's present stage, he is <br />opposed to the project. <br /> <br />Mr. Hartley - Stated that his consensus of what he is hearing tonight is that <br />there is a need for defering the cost to a future time and in doing so, many <br />of the property owners cannot afford the interest costs if they were to <br />accumulate over the period of deferment; have also heard that most of the <br />property owners present are opposed to the project. Mr. ~artley stated that <br />the City of Ramsey is in a position now where it can offer these improvements <br />at less than the amount quoted in the document mailed to the property owners. <br />Ramsey is also in a position to consider the postponement of special <br />assessments to properties for as much as ten years and it does not necessarily <br />mean it has to include the interest earnings over that period of time. Mr. <br />Hartley inquired if the City were able to postpone and reduce the published <br />assessments measurably, would the property owners still be opposed to the <br />project. <br /> <br />Mr. Eggem - Inquired how the assessments would be paid during the deferment <br />period. <br /> <br />Mr. Hartley - Stated that there would be a bond sale to pay for the project; <br />the bond would be repaid through special assessments and tax increment <br />revenues. There are sufficient tax increment revenues to pay the interest <br />costs during the deferment period. <br /> <br />Councilmember Cox - Inquired if landfill funds could also be directed towards <br />the project. <br /> <br />Mr. Hartley - Stated that the landfill fund could be used. There is over <br />$1,000,000.00 in the landfill fund resulting from the sale of the landfill. <br />That fund can be used to guarantee Ramsey will meet it's debt service payments <br />if tax increment revenue falls short. <br /> <br />Mr. Raatikka - Stated that the assessment could be deferred for up to ten <br />years; the assessment would be indexed and interest would not be accrued. With <br />indexing, when the assessment is paid, it will be done so at the going rate for <br />that particular improvement at that time. <br /> <br />Mr. Hartley - Stated that the premise Mr. Eggem is presenting is that even if <br />the installation of utilities were free, he would not be able to develop and <br />market his property at the present time. <br /> <br />Mr. Eggem - Stated that he could market his property at the present for under <br />$10,000/acre but not at $35,000/acre, which is what he would have to get to pay <br />for utility, land and other necessary improvement costs. <br /> <br />Mr. Raatikka - Agreed that that it could take $20,000+ to fully develop an acre <br />industrial property. <br /> <br />Mr. Eggem - Stated that the City runs a risk; if land values and assessments <br /> October 20, 1986 <br /> <br />Page 5 of 6 <br /> <br /> <br />