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<br /> <br />Councilmember Musgrove shared that her understanding of how this would work is that the City <br />would get the taxes which are paid back to the construction and another development within the <br />area that would qualify for TIF funding as receipts are given back to the City. She asked for <br />clarification on this. <br /> <br />Economic Development Manager Sullivan explained that this is a pay-go financing, versus upfront <br />TIF financing. He explained the terms of a pay-go note, including the company paying taxes as <br />usual and as the City receives these taxes, it will go back to the company in the form of the <br />assistance that is granted. He stated that when the requested number is reached then the note ends. <br /> <br />Councilmember Musgrove asked about the $1,300,000 that is intended to be generated on the <br />property and if it is generated after the 20 years. <br /> <br />Economic Development Manager Sullivan said yes and explained that this money will be <br />generated over the course of the TIF district and once the TIF district is over the property will <br />generate $1,300,000 million in taxes annually. <br /> <br />Councilmember Musgrove asked if it was $80,000-$85,000 during the 20 years of the note. <br /> <br />Jason Aarsvold with Elhers came forward and explained that this property will not go into the TIF <br />district with a zero value and will have a value attached to it. He stated that these taxes will not be <br />captured in the district and will go to the taxing jurisdictions. <br /> <br />Councilmember Musgrove shared some of her concerns with this project, including the large <br />amount of money. She asked for more information on Presbyterian Homes doing some fundraising. <br /> <br />Mr. Fletcher shared that Presbyterian Homes has already set aside several millions of dollars to be <br />used in pre-development costs for this project as well as the purchase of the land. He noted that <br />they will be looking to partner with other foundations for fundraising to provide dollars. He stated <br />that this will be a collective effort and they will need to come up with close to $50,000,000. <br /> <br />Councilmember Musgrove asked if there is a possibility to consider TIF for phase one of the <br />project but not for phase two and have phase one support phase two. <br /> <br />Mr. Fletcher stated that the economics of this would not be enough to support phase two. <br /> <br />Mayor Kuzma noted that there are currently no taxes being paid on the property right now and <br />with this project they will at some point have income coming in from this property. He stated that <br />this project is awesome for the community. <br /> <br />Councilmember Riley stated that if they consider the TIF they would not have taxes coming in for <br />the next 20 years which is a large consideration. <br /> <br />Mayor Kuzma added that at the end of the 20 years they will be bringing in over $1,000,000 in <br />taxes annually. <br />City Council / August 8, 2023 <br />Page 6 of 16 <br /> <br /> <br />