Agenda - Council - 03/08/1988 - Laserfiche WebLink

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CASE ~4: 5 Minutes Rf~UEST FOR CITY pARTICIPATION (TAX INCRf~F--NT FINANCING) IN PRG?OSfD pRCGECT; CASE OF MR. DO/<E CARLSON AND MR. KICK FO~I~R By: Anne Norris, C~i~nity Develo~r~-nt Director Background: Mr. Rick Foster and Mr. Duke Carlson are requesting City participation using 'ncr~ment financing for theirproposed apar.tment project to b.e loca~t.e.d .on tax ~, Block 1, Oxbow Addition. This property is currently zoneO F~ Mu£~lple Lot Residential. The project includes one apartment building with 32 market rate rental units. Mr. Foster and Mr. Carlson are requesting City assistance with site in~provements and land costs for the project. This project is currently located within Tax Increment Financing District No. 1 and Develol~nent District No. 1. Enclosed are the following items for your information: a) Site location map Proposed site plan ~I Letter from }~. Carlson dated February 9, 1988 d) Resolution ~87-213 establishing tax incr~ent financing policy Cbservations: As you rece. ll, the City's policy regarding tax increment financing includes Planning and zoning Conmission and Economic Development Com~ission review of all requests. The Economic Development Commission met on March 1, 1988 to review this request, however, there was not a quoru~u. Those Commissioners present were in favor of using tax incr~ent financing for the project as requested. The Planning and zoning Commission will review this request on Thursday, March 3, 1988. Their recommendation will be available at the meeting. In addition, the City's TIF policy calls for Council review of the project with respect to the following issues: --Will the request benefit the City as a whole? --Will the request encourage other private development in the area? --Will the project not occur without muunicipal financial (TIF) assistance? --Is the project legally and financially feasible? I have reviewed this request with Mr. ~.on Batty, Bond Counsel. Mr. Batty stated that public assistance with site i~-~rovements and land costs are common. Y~. Batty cautioned, however, that the City's assistance in land costs cannot exceed the property's current value. }Ir. Batty also noted that the City cannot reimburse a developer for a loss in development density. The City can use that as a rationale for participating in a project. The proposal is projected to generate sufficient increment for the City to consider participation as requested in the project.