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. development district. Consideration should be given to establishing that industrial area along Hwy. 10 as a Tax Increment District so that the increments captured from that area can pay for the public improvements in that area. Chairman Greenberg inquired if platting property would increase the value enough to create a tax increment for the City to capture. Mr. Hartley replied that platting would expand the tax increment if the property is in the tax increment district. Mr. Hartley noted that disticts throughout the State found it difficult to make projections a year or two ago when Legislature changed the formula under which taxes are calculated because taxes on certain properties reduced substantially. Don't assume that just because there is growth, there will be an increment. Mr. Raatikka proceeded to give a slide presentation regarding project scope, costs and time schedule related to extending public improvements to the City's industrial area. . Mr. Raatikka then explained how the basis for assessing for municipal sewer and water was arrived at and used in River's Bend and Flintwood II. A complete trunk sewer and trunk water system for the entire city was considered; the cost of those complete systems was divided by the number of allowable residential connections. For sewer, it came to $390.00 for each residential equivalent connection (REC) and for water it was $867.65 for each residential equivalent connection. The per acre cost for commercial/industrial properties was computed at a rate 5.5 times that of a residential equivalent connection; $2,145.55 for sewer and $4,772 for water; $6,917.63 for both sewer and water. Mr. Hartley proceeded to review financing options 1 through 5 (see Attachment I) with the Commission. Mr. Hartley stated that the cost for municipal sewer and water per acre of commercial/industrial property would be as follows: Option #1: Option #2: Option #3: Option #4: Option #5: $7,433.74 $6,540.93 $5,032.92 $4,139.91 $3,635.64 Mr. Hartley noted that tax increments revenues cannot be used to defer improvement assessments. Commissioner Hardin dismissed himself from the meeting at 8:45 a.m. Mr. Raatikka stated that the Schwartzman's own property along Hwy. #10 and are interested in participating a public improvement project. . After a brief discussion, the consensus was that the Schwartzman property should be considered for public improvements in the future, but amending plans to include that property at this time would delay the project beyond the September 1, 1986 deadline for selling tax exempt bonds. April 29, 1986 Page 2 of 4