Minutes - Council - 09/11/2007 - Laserfiche WebLink

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Councilmember Elvig indicated the Finance Committee had a fairly vigorous discussion. He agrees with some of Councilmember Look's position on TIF, but is concerned that the EDA is what accomplishes the goal of developing more commercial property to offset the residential. The EDA is the tool and the group that puts together proposals, monitors, and goes out and markets the City to commercial venues to try to cultivate these opportunities. This levy is the only way the EDA gets funding. He would love to engage in discussions with Councilmember Look on TIF and how to use it; it is a very complicated animal with right ways and wrong ways to use it. Councilmember Dehen stated he is not a big advocate to tax just to tax or bank money. Initially he was not too upbeat about another way of taxing the residents; however, he had changed his mind given the fact that it is in his viewpoint important to the residents to develop some transportation corridors potentially, and certainly these types of funds would be important in developing some transportation corridors to move traffic better. If they have to by eminent domain or by the purchase of various properties expand the transportation corridors that the residents have repeatedly asked for, he.is in support of the levy for that reason, so when the time comes they can acquire the necessary properties. They should try to at least be specific with the residents on their intentions so they can better justify the actions on why they are taxing the residents. It gives people an easier pill to swallow when they know where their money is going. Councilmember Elvig stated he supports the EDA levy. It is a vehicle and a tool to develop business. He asked Councilmember Look why he abstained rather then voted in opposition of the levy. Councilmember Look stated he is not necessarily opposed to the levy; he is opposed to the imbalance that has occurred at this point. Regarding Councilmember Dehen's comments, this money would be used to purchase a building that might not meet the standards the City wants, and in that case the City will take the building down and may sell it. The HRA funds would be used more towards transportation networks. He is concerned with taking money from the residents who are bearing the lion's share of the tax load and transferring it to the commercial base, and it is then 10 to 25 years before those businesses are contributing to the general fund. He sees more burden being placed on the residents. He is not advocating for the businesses. to carry all the EDA load either, but that may be more of a benefit to them. Motion by Councilmember Strommen, seconded by. Councilmember Elvig, to ratify the recommendation of the Finance Committee in Case No.1 and to adopt resolution #07-09-235 approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2008 in the amount of $393,375. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Strommen, Elvig, Dehen, Jeffrey, and Olson. Voting No: None Abstain: Councilmember Look. 2) Adopt Resolution Approving Proposed 2008 Payable Tax Levy Finance Officer Lund stated the levy before the Council has been presented at several work sessions. What has been proposed is that the levy rate remain the same as in 2007. The 2008 City Council / September 11,2007 Page 16 of22