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Economic Development Manager Sullivan explained that under state statute, Cities have the <br />authority to create Tax Increment Financing (TIF) districts. He stated that the City would need to <br />hold a public hearing as part of the process. <br /> <br />Economic Development Manager Sullivan noted that the proposal would then be sent to the <br />County for review, but the County does not have an approval role in the process. He explained that <br />the County can provide comments or identify potential improvements related to the project, such <br />as roadway or turn lane needs on County roads. He concluded that the City ultimately has the <br />statutory authority to establish the TIF district independently following the required public hearing <br />process. <br /> <br />Councilmember Buscher stated that she supports the project concept and was initially excited to <br />hear about the proposal. She said she believes this type of senior housing is needed in the <br />community. <br /> <br />Councilmember Buscher also expressed concern about the developer’s response regarding <br />prevailing wages. She stated that if the project cannot support prevailing wages, it raises questions <br />about the development's financial capacity and whether cost savings could affect the quality of the <br />facility or the services provided to residents. <br /> <br />Mr. Fink responded that, based on information from the contractor, requiring prevailing wages <br />would significantly increase construction costs. He stated that prevailing wage requirements would <br />not change the construction methods or the quality of the building, but would add additional <br />administrative and labor expenses. <br /> <br />Mr. Fink explained that these added costs could increase the overall construction expenses by <br />approximately 20 to 25 percent. He said that this level of cost increase would make the project <br />financially unfeasible. <br /> <br />Councilmember Buscher responded that she believes prevailing wage requirements are important <br />for protecting workers and ensuring proper labor practices. She stated that prevailing wages help <br />prevent situations in which workers may be performing jobs they are not properly trained for or in <br />which wage theft could occur. <br /> <br />Councilmember Buscher also expressed concern that without prevailing wage requirements, there <br />is a risk of undocumented or off-the-books labor being used. She said these policies help ensure <br />that workers are properly documented and paid and protect the City from potential liability or <br />federal penalties for labor violations. <br /> <br />Mayor Heineman responded that prevailing wage requirements can help prevent those issues. He <br />acknowledged Councilmember Buscher’s point that such policies can protect workers. <br /> <br />Mayor Heineman also noted that some non-union organizations and contractors perform quality <br />work and operate responsibly. He indicated that while he understands the concerns raised, he did <br />not want to assume that non-union labor automatically results in poor practices or lower standards. <br /> <br />City Council Work Session / March 10, 2026 <br />Page 8 of 21 <br />