Minutes - Council - 06/13/2023 - Laserfiche WebLink

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6.02: PUBLIC HEARING: Adopt Resolution #23-126 Approving Business Subsidy and Authorizing Execution of a Tax Increment Financing (TIF) Agreement and Approving Terms of an Interfund Loan; case of Ramsey Properties, LLC Presentation Economic Development Director Sullivan reviewed the staff report concerning the project of Home2Suites by Ramsey Properties, LLC. He shared the request of the applicant which would include a TIF land cost write-down of $434,511 and $550,000 with 5% interest on Pay-Go TIF for the reimbursement of site improvements for the project, including a parking lot, fill and soil correction, and utilities. Public Hearing Mayor Kuzma called the public hearing to order at 7:47 p.m. Citizen Input There was none. Motion by Councilmember Riley, seconded by Councilmember Musgrove, to close the public hearing. Motion carried. Voting Yes: Mayor Kuzma, Councilmembers Riley, Musgrove, Howell, Olson, Specht, and Woestehoff. Voting No: None. The public hearing was closed at 8:00 p.m. Council Business Councilmember Woestehoff noted the minimum assessment agreement of $7.14 million and asked when this value takes affect and how long it lasts. Economic Development Director Sullivan stated that they will execute the minimum assessment agreement once they get approval to do the TIF agreement. He added that it will subside when the property hits the tax roll. Councilmember Musgrove asked about following up on the job creation portion of this project and asked if it includes the percentage of expected return on market value. Economic Development Director Sullivan explained that whenever there is a business subsidy awarded the State wants to make sure that things are moving along. He noted that this trigger is initiated by the State in the TIF agreement. He added that there is no follow up on how the project performs. Councilmember Musgrove asked what percentage of occupancy was used in Elher’s calculation. City Council / June 13, 2023 Page 7 of 19