Minutes - Council Work Session - 03/10/2026

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Mayor Heineman stated that the City Council would begin looking for consensus on the proposal. He asked Councilmembers whether they supported the project as presented and requested a show of thumbs up from those who were comfortable with the proposal in its current form. Councilmember Stewart stated that she would like to discuss the Tax Increment Financing (TIF) portion of the proposal before indicating support. Mayor Heineman stated that, since there was no consensus on the proposal as presented, the City Council should discuss the changes needed for the project to move forward. He explained that rather than voting it down entirely, the Council could identify specific modifications they would like to see. Mayor Heineman then asked the Councilmembers what changes they would like to see made to the proposal to support the project. Councilmember Stewart stated that she would like to hear Councilmember Riley’s thoughts on the proposed Tax Increment Financing (TIF) structure. She said she would like to explore whether the City’s share could be increased beyond the proposed 10 percent in the 90/10 split. Councilmember Stewart noted that she is supportive of the overall project but believes the TIF terms should be negotiated further so that the City receives a slightly larger share. Councilmember Riley stated that he agreed with Councilmember Stewart. He indicated that he supports the project concept but believes the details, particularly the Tax Increment Financing terms, should be negotiated further. Economic Development Manager Sullivan provided input regarding the discussion about modifying the Tax Increment Financing (TIF) terms. He explained that increasing the City’s share in the 90/10 split may not be the most effective approach, as the funds available through TIF are limited and must be used for specific eligible expenses. Economic Development Manager Sullivan suggested that if the City Council wanted to improve the City's financial benefit, a better approach would be to shorten the TIF district's duration rather than change the percentage split. For example, instead of a 25-year term, the City could consider a 20-year term so that the property would return to the full tax rolls sooner. Economic Development Manager Sullivan noted that even if the City received a larger share of the increment, there may not be sufficient eligible uses for those funds in this project area. Therefore, shortening the district's duration could provide a clearer benefit to the City by allowing the full tax revenue to return sooner. Councilmember Buscher stated that she knows Matt and believes he is a good person who would not bring a harmful project to the City. She reiterated that she stands by the concerns she previously expressed. City Council Work Session / March 10, 2026 Page 10 of 21