Minutes - Council - 09/28/1999 - Laserfiche WebLink

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Presentation Economic Development Consultant Mulrooney stated that the 1999 Legislature passed into law new regulations relating to business subsidies which include Tax Increment Financing (TIF). The regulations require that the City hold a public hearing and adopt criteria for awarding business subsidies for any projects receiving assistance after August 1, 1999. Mayor Gamec questioned if the Business Subsidy Policy had been reviewed by the City Attorney. Mi'. Mulrooney replied yes. Citizen Input None. Motion to by Councilmember Hendriksen, seconded by Councilmember Connolly, to close the public hearing. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Connolly, Anderson, and Zimmerman. Voting No: None. The public hearing closed at 7:30 p.m. Council Business Mayor Gamec called the regular portion of the City Council meeting back to order at 7:30 p.m. Councihnember Anderson questioned the rationale of the policy. Mr. Mulrooney stated that the Business Subsidy Policy was drafted to allow the Council some flexibility as to the types of wages being paid and to not be restricted by the type of project. The policy is rather generic to allow the Council to make a decision on each individual project rather than trying to make a project meet the requirements. Councilmember Zimmerman referenced an article in "Governing Magazine" that stated TIF Districts did not do much for the overall economy, they tend to pay low wages, and the complexity of the districts makes it only available to the largest developers. He suggested that the City should not discriminate against small developers. Mayor Gamec questioned if the legislature is trying to get away from TIF. City Council/September 28, 1999 Page 5 of 30