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<br />. <br /> <br />Ms. Norris explained that with Chapter 444, the City would construct the <br />utilities and rather than assess, a connection fee would be charged at the time <br />of hook-up. That connection fee would cover the cost of construction; would <br />be spread out over a ten year period; and will vary with the cost of <br />construction at the time of hook-up. <br /> <br />Chairman Greenberg stated that with current economic trends, he feels a 10 year <br />time limit for deferments is too short. The property values will rise with the <br />availability of services, and therefore the taxes; that increase should <br />encourage development and offset the concern that 30 year deferments will deter <br />development. <br /> <br />Commissioner Vevea stated that the taxes are already too high for what services <br />are being received. <br /> <br />Commissioner Ippel stated that the City can't be giving away forever; at some <br />point in time the City needs money coming in. <br /> <br />Chairman Greenberg stated that sewer and water is needed to promote development <br />and it will never happen without tax increment financing, yet the City has to <br />be careful not to bankrupt existing businesses and landowners. <br /> <br />Case4F1: DisctissionRe~ardini InctibatordProp6sa.l ByTronWorksd DevelOpment <br />COll\Pai1.y: <br /> <br />. The Commission proceeded to review the proposal for an incubator facility from <br />Iron Works Development Company. <br /> <br />The Commission noted that the proposed rent fees are not very much of a <br />discount from current market rates. Ms. Norris noted that the facility is not <br />intended for fledgling businesses but rather for smaller, healthy businesses. <br />The facility will be an incubator in that it will have some assistance <br />available to renters but it should be looked at as a private office/warehouse <br />development. <br /> <br />Commissioner Kurak stated that what Iron Works is proposing is not 'incubator', <br />but the City does need office/warehouse and office/manufacturing facilities. <br />Suggest that the City put together an incentive package (providing for paved <br />parking area, reduced taxes for a period of time, etc.) that would be available <br />to anyone that would develop office/manufacturing/warehouse space to be <br />privately owned and operated with no government involvement beyond the <br />incentive package. <br /> <br />Commission consensus was that the facility proposed by Iron Works is not an <br />'incubator' but rather more of a private development and the City purchasing <br />the land, permits and marketing plans for the facility would not be <br />justifiable. An incubator would have lower rental rates and city parameters <br />regarding businesses involved, creation of jobs, etc. <br /> <br />. <br /> <br />Chairman Greenberg suggested that maybe Ramsey's form of incubation should be <br />subsidizing fledgling businesses looking to locate in office/warehouse/ <br />manufacturing facilities that are privtely developed and operated. <br />EDC/November 19, 1986 <br /> <br />Page 4 of 5 <br />