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<br />Kayor Heitman inquired who is responsible for the debt if enough development <br />does not occur to create sufficient increment to aake the project se1f- <br />supporting. <br /> <br />Mr. Hartley stated that the debt is the full faith and credit of the City, but <br />there are extremely conservative tax increment projections for this area that <br />exceed $5,000,000. <br /> <br />Mr. Bartley suggested that considering the current financing market and the tax <br />increment tool, it might be in the City's best interest to borrow sufficient <br />funds to cover the cost of constructing an elevated water tank. <br /> <br />Tom Renner - Industry Avenue - Inquired as to the total cost per acre for <br />sewer, water and storm sewer. <br /> <br />Mr. Bartley replied that there are figures for sewer and water; storm sewer <br />costs are not included because there is still a question on how to finance <br />storm sewer. The figures include interest for those early years before tax <br />increments begin coming in. Mr. Hartley quoted per acre sewer and water costs <br />found in Options 1-5 of Attachment II. Council has to make a decision on which <br />financing option to use that will allow for the best use of tax increment <br />revenues without establishing an unfavorable business relationship between <br />business properties. <br /> <br />Mr. Renner - Stated that before the water system is of any value, the City will <br />have to have an overhead tank and one more municipal well. <br /> <br />Mr. Bartley agreed snd stated that is why he is suggesting consideration of <br />borrowing enough money to cover the cost of an elevated tank would be <br />worthwhile. <br /> <br />Mr. Renner - ~pressed concern with the proposed location for the new well, <br />the water system because of the type of formations in Ramsey, amount of draw <br />down that will be created and amount of landfill leachate that will be pulled <br />down into the ground. Right now, lower formations are pushing upward; leachate <br />is absorbing dOWDWard into the ground, hitting the first clay area and being <br />carried off to rivers by the upward push from water below. Municipal wells <br />will reverse this action and leachate will get into the formations and then <br />into wells. <br /> <br />ADJOURNMENT <br /> <br />Motion by Councilmember Cox to adjourn the public hearing. <br /> <br /> <br />Further Discussion: Mr. Bartley stated that it is not intended that Ramsey <br />Terrace and F1intwood I be assessed for the water ..in and will not be until <br />they develop in a way that requires tying into the system. Mr. Renner stated <br />that there are residential properties that will benefit from trunk line <br />construction; will those properties be a.sessed? Counci1member Cox stated that <br />a portion of the costs will be picked up by tax increment revenues; residential <br />properties are assessed when they hook up to the laterals. Mr. Renner inquired <br />if any of these iaprovements are being considered in order to enhance the life <br />April 29. 1986 <br /> <br />Page 2 of 3 <br /> <br />- <br />