Agenda - Council - 10/22/2019 - Laserfiche WebLink

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Economic Development Manager Sullivan explained that more than four parcels would be added in. He provided additional details, noting that one original parcel was subdivided into about 70 for townhomes. Councilmember Riley asked if an estimate of 100 hours would be accurate to file this information. Economic Development Manager Sullivan stated that the City's TIF counsel provided this estimate based on the length of time needed to complete a similar process in Andover. Councilmember Kuzma commented that when the properties were removed in 2014, there was a huge financial obligation to leave those properties in and removing the properties provided relief to the City. He asked if putting these properties back in would result in financial obligations to the City or property owner. Economic Development Manager Sullivan stated that there would not be material impacts to these properties moving forward. He commented that the costs for TIF counsel would be reimbursed through the TIF revenue. Councilmember Menth asked what would happen if this did not move forward. Economic Development Manager Sullivan commented that there are a number of projects, specifically using Affinity at Ramsey, which has a TIF note and there are TIF obligations. He explained that parcel is currently not within the TIF District and therefore there would be an impact. He noted that the other parcels proposed to be included would also generate revenue within the TIF District that would be used to pay TIF obligations. Councilmember Musgrove asked and received confirmation that when the parcels are added back into the TIF district the City would capture additional tax revenue. Economic Development Manager Sullivan confirmed that the City would receive that additional revenue and reviewed some of the obligations that can be funded through that TIF revenue. Councilmember Musgrove asked how that would benefit the City overall. Economic Development Manager Sullivan explained the intent of TIF, to use those funds to assist in developing additional tax capacity value through development. Motion by Councilmember Kuzma, seconded by Councilmember Musgrove, to Adopt Resolution #19-245 Approving Authorization to Add Parcels into TIF District 14. Further discussion: Councilmember Riley stated that he is uncomfortable with the up to $30,000 estimate and would like to see additional breakdown of hours and costs. City Administrator Ulrich stated that it is consistent to use an estimate from the consultant used by the City. He noted that this process involves about 80 parcels with different legal descriptions attached. He stated that the City could make it clear that it would prefer to stay on the low -end of the estimate. City Council / October 8, 2019 Page 12 of 15