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development. If the owner of the property wants to enter into a development agreement similar <br />to what occurred in 1985, then he would be okay with that. <br /> <br />Mayor Gamec stated that he is comfortable with the City contributing to the proposed extension <br />as long as there are adequate funds. <br /> <br />Councilmember Zimmerman questioned how they can make it fair for everyone if the City is <br />willing to spend funds to extend sewer and water in one area in the City when someone else <br />might be asking for it in a different area. He thought it was more equitable for the developer to <br />pay the initial cost and have the City pay them back. <br /> <br />City Engineer Olson noted that the City took two major risks that did not include TIF funds, <br />which were the school extension and the 1996 extension. <br /> <br />Councilmernber Hendriksen replied that the 1996 extension was primarily to provide services to <br />the commercial and industrial businesses, which he views differently. He noted that he has been <br />asking for information showing the net tax value between residential development and industrial <br />development for three years. <br /> <br />City Administrator Norman replied that staff is working on that information, but there are a few <br />other cities that have done similar studies that have shown that residential development has a <br />higher net tax value than industrial development. <br /> <br />Councilmember Hendriksen stated that one thing they should avoid doing in the future is ending <br />a trunk extension half way through the property. The extension should always terminate at a <br />property line. <br /> <br />City Engineer Olson replied that he agreed with that 100 percent. He stated that he would like to <br />discuss the idea of the developer being responsible for a certain number of lots to cover the cost <br />of the trunk extension. <br /> <br />Councilmember Hendriksen stated that Reilly Estates had final plat approval 10 to 15 years ago, <br />and a portion of the project was never built. Just because a project has final plat approval is no <br />guarantee that there will be a development. <br /> <br />City Engineer Olson replied that if in the development agreement it states that the developer is <br />responsible for the installation of the pipe and indicates a certain amount of lots that will be built, <br />if the developer is unable to build the lots as required then the developer would still be <br />responsible for the cost. <br /> <br />Councilmember Hendriksen stated that he had thought that they were talking about using City <br />funds to pay for the infrastructure and then the City being paid back in the future as development <br />Occurs. <br /> <br />City Council/October 8, 2002 <br /> Page 4 of 7 <br /> <br /> <br />