Minutes - Council Work Session - 07/18/2023 - Special

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built this or plat it, this piece is very important. He stated that he does not know the schedule for the infrastructure of Yolite Street. City Administrator Hagen noted that Yolite Street was not included in the design for this year and it was more of a same-day project. Councilmember Riley asked if this is built on the assumption that no other improvements are built into this. City Administrator Hagen said that was correct. Councilmember Riley stated that if Parcel 46 has 130 townhomes put on it this would have a big effect on the production of the TIF district. Economic Development Manager Sullivan stated that this was discussed at an earlier work session and they found that on a per acre basis the apartment projects would generate the most tax increment for the district. He noted that the nice thing about property taxes from an apartment building is that it is pretty much all of the taxes that go into the district, as commercial properties have other State taxes. He stated that there are benefits for an apartment project if they are looking to generate cash. He added that this would be more than what they had anticipated when they discussed this with Elhers originally. He noted that this is 4-A not 4-D and that there is not an affordable component to what they are proposing which leads to a lower tax generation based on some legislation that just passed that lowers tax breaks for these projects. Councilmember Musgrove asked if the Elhers’ memo does not include the proposed homes or the apartment and if the return potential is greater after these developments. Economic Development Manager Sullivan stated that was correct. He asked what items are the ones the City wants to pay themselves back for. He explained that there are some development costs that have been memorialized within the TIF district and that they may not be eligible for the TIF dollars. He stated that it is possible they can get these items added. He noted that the special legislation allows them to at least incur the expense. He explained that the order in which they make the payments back to themselves is up to the City. He stated that they could build Zeolite Street next year and reimburse themselves for that if they so choose. Councilmember Musgrove shared that she would like to see development go forward but would also like to see how paying themselves back may impact the budget. City Administrator Hagen stated that when looking at the policy, none of them are for the general operating fund. He said that paying these things back would help the budget in future years. He stated that TIF 1, 2, and 4 are flexible. He explained that if they want to redo the reimbursement policy to focus on where they will get the most bang for their buck, they can look at this. Councilmember Woestehoff stated that doing Zeolite and West Ramsey makes sense. He asked if these investments that they make in the TIF district have an impact on the taxpayer or the general fund because of how it is structured. City Council Special Work Session / July 18, 2023 Page 4 of 8