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MINUTES SPECIAL CITY COUNCIL MEETING SEPTEMBER 19, 1984 PAGE 2 Mayor Eggert then commented on the need for a comprehensive policy on how to use tax increment financing and industrial revenue bonds and suggested that in the near future a workshop be scheduled to start the drafting of such a policy. At 7:15 Mayor Eggert opened the Public Hearing on Tax Increment Financing PUBLIC District No. 1 within Development District No. 2. Fiscal Consultant HEARING ON TIF Apfelbacher presented the project plan, explained how the increments DISTRICT N0. will be generated, and how the funds will be used to assist in the Bullseye L WITHIN development. He explained that based on the assumptions in the report DEVELOPMENT only a 20 year plan should be necessary (with a call feature allowing DISTRICT payment before the 20 year period expires should sufficient funds be N0. 2 available). Mr. Apfelbacher and Mr. Chenoweth explained the impact of the fiscal disparities law on the increments. Councilmember Ciernia inquired what the effect would be if a ten year plan was adopted, and Mayor Eggert and the Fiscal Consultants agreed that it would reduce the funds approximately 57%. Councilmember Baldwin asked how the term of the bonds would affect the project. Mr. Chenoweth replied that if $400,000 in bonds is needed for the project the City must sell $600,000 bonds over a 20 year period, and to be conservative he would recommend going 20 years with a call on it. Mr. Chenoweth was of the opinion that the tax increment funds being used are not significantly different from those used in other communities, and due to the irregular shape and size of the property being developed (Embers breaking up the parcel on the west and six homes on the northeast corner), without subsidy, the development probably would not take place. Councilmember Baldwin questioned whether or not this project warranted deferring taxes for 20 years. There being no others wishing to be heard, Mayor Eggert closed the hearing at 7:43 P.M. Council then reviewed the proposed resolution adopting the Development Plan and Tax Increment Financing Plan after which Part 8 was deleted (relating to the development agreement which was to be addressed later in the meeting). Mayor Eggert moved, seconded by Councilmember Chestovich, that Resolution 84-31 be adopted. Upon a vote being taken, the following voted in favor thereof: Mayor Eggert, Councilmember Baldwin, Hard, and Chestovich, and the following voted against the same: Councilmember Ciernia due to the fact that he felt the level of subsidy outweighed the benefits. Motion carried. RESOLUTION 84-32 RESOLUTION 84-31 RESOLUTION ADOPTING DEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN, DECLARING PUBLIC PURPOSE, REQUESTING CERTIFICATION OF ORIGINAL ASSESSED VALUE, PROVIDING FOR FILING, ADMINISTRATION John and Mike Labalestra, owners of Lido Cafe, presented a conceptual draw- LIDO CAFE ing of the proposed addition to their establishment. They explained that EXPANSION they desire to purchase the home to the north of their property and the PLANS owner is willing to sell, however, rezoning will be necessary as the REFERRED TO present zoning is R-1. They requested permission to meet with representatives PLANNING of the City regarding financing, etc. Following a short discussion, Mayor COMMISSION Eggert moved, seconded by Councilmember Chestovich, that John and Mike Labalestra be allowed to meet with the Fiscal Consultant and Attorney to discuss financing options, with the understanding that the costs will eventually be paid by the developers. Motion carried unanimously.