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City Engineer Olson stated that he would like to hear discussions as it relates to the use of trunk <br />funds. <br /> <br />City Administrator Norman stated that he agrees that TIF funds are not an option today as it was <br />in the past, but the City was involved in trying to work with the development in getting the trunk <br />lines moved out because it is good development. It was good planning and the City was able to <br />exercise whatever tools they had at that time. <br /> <br />Councilmember Anderson stated that there has been some discussion about TIF funds being used <br />to construct the infrastructure within the town center site and inquired if that was still the case. <br /> <br />City Engineer Olson replied that he was not sure, but he does know that TIF funds cannot be <br />used for new residential development. <br /> <br />Councilmember Hendriksen stated that he had heard last night that the entire cost of the town <br />center would be paid for entirely by the developer. <br /> <br />Councilmember Zimmerman stated that with the changes in the TIF Laws it does not appear that <br />TIF will be an advantage to the City anymore. <br /> <br />City Engineer Olson noted that in all the trunk extension cases there was some City participation <br />and the developer was not responsible for the entire cost. He stated that if the City does not plan <br />for future development with the use of the trunk fund then what does the City collect the fee for. <br /> <br />Mayor Gamec stated that he would not want to extend the system out so far that they are unsure <br />as to when development will occur, but if they are fairly sure that development would be <br />occurring in the near future then he does not have a problem with it. <br /> <br />City Engineer Olson replied that it all comes down to finances. <br /> <br />Councihnember Hendriksen stated that in the previous examples they have talked about having <br />development agreements, developer paying costs up front and then being paid back by the City <br />as development occurs. To him it seems that the deviation in this case is that they are becoming <br />more speculative with less guarantees in uncertain financial times. The economy is staggering at <br />this time and no one can predict what is going to happen. The developer who would be making <br />the profit should be taking the risk. If the developer comes in with a development agreement that <br />puts them financially on the hook to cover the cost then he can agree with it. <br /> <br />City Administrator Norman noted that the City has taken risks in the past regarding future <br />development. <br /> <br />Councilmember Hendriksen replied that he views a TIF agreement differently because the City <br />knows that they will be collecting money. Now they cannot guarantee that there will be future <br /> <br />City Council/October 8, 2002 <br /> Page 3 of 7 <br /> <br /> <br />