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Minutes - Council - 10/08/2019
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Minutes - Council - 10/08/2019
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Minutes
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Council
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10/08/2019
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Economic Development Manager Sullivan explained that more than four parcels would be added <br /> in. He provided additional details, noting that one original parcel was subdivided into about 70 <br /> for townhomes. <br /> Councilmember Riley asked if an estimate of 100 hours would be accurate to file this <br /> information. <br /> Economic Development Manager Sullivan stated that the City's TIF counsel provided this <br /> estimate based on the length of time needed to complete a similar process in Andover. <br /> Councilmember Kuzma commented that when the properties were removed in 2014, there was a <br /> huge financial obligation to leave those properties in and removing the properties provided relief <br /> to the City. He asked if putting these properties back in would result in financial obligations to <br /> the City or property owner. <br /> Economic Development Manager Sullivan stated that there would not be material impacts to <br /> these properties moving forward. He commented that the costs for TIF counsel would be <br /> reimbursed through the TIF revenue. <br /> Councilmember Menth asked what would happen if this did not move forward. <br /> Economic Development Manager Sullivan commented that there are a number of projects, <br /> specifically using Affinity at Ramsey, which has a TIF note and there are TIF obligations. He <br /> explained that parcel is currently not within the TIF District and therefore there would be an <br /> impact. He noted that the other parcels proposed to be included would also generate revenue <br /> within the TIF District that would be used to pay TIF obligations. <br /> Councilmember Musgrove asked and received confirmation that when the parcels are added back <br /> into the TIF district the City would capture additional tax revenue. <br /> Economic Development Manager Sullivan confirmed that the City would receive that additional <br /> revenue and reviewed some of the obligations that can be funded through that TIF revenue. <br /> Councilmember Musgrove asked how that would benefit the City overall. <br /> Economic Development Manager Sullivan explained the intent of TIF, to use those funds to <br /> assist in developing additional tax capacity value through development. <br /> Motion by Councilmember Kuzma, seconded by Councilmember Musgrove, to Adopt <br /> Resolution#19-245 Approving Authorization to Add Parcels into TIF District 14. <br /> Further discussion: Councilmember Riley stated that he is uncomfortable with the up to $30,000 <br /> estimate and would like to see additional breakdown of hours and costs. City Administrator <br /> Ulrich stated that it is consistent to use an estimate from the consultant used by the City. He <br /> noted that this process involves about 80 parcels with different legal descriptions attached. He <br /> stated that the City could make it clear that it would prefer to stay on the low-end of the estimate. <br /> City Council/October 8,2019 <br /> Page 12 of 15 <br />
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