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I I I I I I I I I I I I I I I I I i I interest p~yments during that interim period from project initiation to the first tax reoeipts, the city may have to increase the size of the bond issue for capitalized interest. Bob Muller stated that he is oonsidering building a strip center in an area of Ramsey for which public imp~ov~ents are not planned and inquired as to how tax incr~nent financing would benefit his situation. Ms. Waelti stated that in Mr. Muller's case, tax incr~ent financing could be used for lighting, signage, landscaping, sidewalks, public parking (or soil prepsration for private parking), and grassy areas. Council~nber Cox inquired as to how tax increment financing can be used for public servioes such as a bridge crossing or YMCA facility, which would attract development to a certain area. Ms. Waelti replied that tax incr~ent financing could ~be used for a community center that would be leased to the YMCA for instance. ~ne city cannot build a building in which the city will conduct city business. Councilmember (Dx inquired if the city can let funds acct~nulate and build a community center a couple of years down the line. Ms. Waelti replied that acc~ulating funds for future use is allowed but the problem with waiting is that the community center may be needed at an earlier time to ~ke the development project more viable. Councilm~mber Schlueter inquired if there is a time limit on development of a parcel in the tax incr~nent district. Ms. Waelti replied that if nothing happens on a parcel in 4 years, the parcel is dropped fr~ the tax increment district; if interest in the parcel occurs after it's deletion, that parcel can be readmitted to the district. Ms. Waelit also noted that economic development districts (for new development) are set up for a time period of 8 years; tax increment districts for commercial redevelopment and moderate income housing are set up for a time period of 25 years. Mr. Jack Ippel referred to Ms. Waelti's earlier comment regarding tax increment financing running for as long as it take to pay for the public improvements and inquired if that doesn't conflict with her statement regarding redevelopment and housing being set up for 25 years. Ms. Waelti replied that a tax increment project area can be set up for 25 years; the tax incr~ent districts within the project area run for as long as it takes to pay of the improvements to that specific area. Council~-~ber Cox inquired if areas already with some development can be included in tax increment districts. Ms. Waelti replied that if there is ongoing construction, the parcel cannot be captured and included in the tax increment district if the building permit was April 30, 1985 Page 3 of 5