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

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City Administrator Hagen shared that the impact to the taxpayer would come if property values drastically decrease and the annual revenue also decreases. He noted that the Elhers’ analysis assumes that property values stay the same. Councilmember Riley stated that they have always been proponents of putting TIF dollars in the ground as it is money that the City would have to spend anyway. City Administrator Hagen asked Council what projects they would like the City to focus on as they look at planning the 2024 projects. He noted that the Zeolite and West Ramsey projects make sense, as well as the Center Street reconstruction. He added that they stopped looking at the east side as most of the work was needed on the west end. He asked Council for feedback and direction. Economic Development Director Sullivan stated that the numbers are estimates for the projects but they are all in costs that include sewer and water infrastructure. He noted that if they were to do F-2, F-1, and A-2, this would come out to about $3,300,000. He added that the A-1 stretch of road will be rather expensive and would cost $2,600,000 on its own. He noted that the TIF runs out through 2040 so the quicker they get the projects in the ground they collect the taxes earlier, so there is an advantage to getting these projects started sooner. Mayor Kuzma asked if there is an appetite to move forward with the Zeolite Street and West Ramsey Parkway project. Councilmember Riley noted that before talking about adding new streets they should be certain that they are able to take care of the streets that they have. Councilmember Musgrove stated that part of adding new streets is not only the demand for upkeep, but also the demand for manual labor and may require more personnel. She added that they would need to have more street workers if they want to keep up with all streets. Councilmember Woestehoff stated that he would be on board with Zeolite as well as the A-2 section and wait for the A-1 section and make the decision next year. He mentioned that Zeolite is an important road to get done for the upcoming projects. Economic Development Manager Sullivan explained that as each year passes the revenue projections will get more clear. He stated that it is a gift that they were able to get a three year extension on the TIF dollars. He noted that there is not a lot of increment that will come in from the hotel project and no increment from the apartment project. He added that they will get an updated analysis from Elhers next year that will make them feel more comfortable about adding more expenses for 2025. Councilmember Musgrove asked which street sections Councilmember Woestehoff was suggesting. Councilmember Woestehoff stated that he would do the entire length of Zeolite as well as the small segment of West Ramsey City Council Special Work Session / July 18, 2023 Page 5 of 8