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<br />new, and the savings or existing costs. He reported the cost of the restructure would be <br />approximately $82,000. <br /> <br />Member Kiefer stated that when the Fire Station came due, a lower interest rate was considered; <br />however, the City chose not to use this for funding. He asked if there is a reason for not looking <br />at this for restructuring. <br /> <br />Mr. Donna replied the City is restructuring a portion of the debt and that it would not work to <br />have two different types of financing for restructuring. He stated it would not be economical to <br />restructure the entire bond issue. He indicated there is an option to refinance existing debt using <br />CIP or lease revenue. <br /> <br />Economic Development Consultant Mulrooney questioned whether the lease is extended. <br /> <br />Chairperson Riley questioned where the money freed up would be spent. <br /> <br />Finance Officer Lund replied the debt is paid by the levy, so the money comes in the future. She <br />explained the City wants to keep the tax rate the same based upon the $750,000 current annual <br />debt service. Council's direction was to maintain the tax rate going forward. <br /> <br />Chairperson Riley asked if the Town Center significantly influenced the growth of the City. <br /> <br />Interim City Administrator Nelson replied it is overall throughout the City and not entirely due to <br />the Town Center. <br /> <br />Finance Officer Lund commented that development throughout the City was impacted; however, <br />the Town Center is the largest chunk. <br /> <br />Economic Development Coordinator Sullivan stated that by the end of2010 it was estimated that <br />80% of the Town Center would be constructed. He stated it is currently in a hold situation based <br />on several factors, which has contributed to development occurring at a slower pace than <br />estimated. He reported the Fiscal Impact Study was completed and indicated there was more of <br />a slowdown of commercial and residential development within the City; however, industrial has <br />remained constant. <br /> <br />Interim City Administrator Nelson stated the valuations are not increasing, the market is leveling <br />itself. She commented that the years of 13 to 15% appreciation in market value are probably <br />gone. <br /> <br />Chairperson Riley questioned that if the assumptions made are wrong, whether the City should <br />consider refinancing. <br /> <br />Mr. Donna replied it is an option. <br /> <br />Finance Officer Lund reported that the TIF districts come on line in 2010-13; therefore, the TIF <br />monies would come back into the General Fund. <br /> <br />Economic Development Authority/September 6, 2007 <br />Page 3 of 8 <br />