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REGULARCITY COUNCIL MEETING/PUBLIC HEARING <br />MARCH 10, 1982 <br />PAGE 3 <br />~~ <br />value is set aside for public improvements. It has been suggested, ATTORNEY <br />in respect to this PUD, that it might be possible that the area be SWANSON (cont~: <br />designated as a tax increment district, in which case, the City could <br />finance streets and utilities with the increased taxes derived from <br />the improvements. Attorney Swanson suggested that Council might wish <br />to explore the matter further. <br />Mayor Warkentien commented on the fact that tax increment financing <br />might be a way to finally get a connection to the St. Anthony Storm <br />Sewer which the City has been unable to finance in the past. <br />Fiscal Consultant Chenoweth stated that realizing the market value of <br />the proposed project and working with the assessed value and growth <br />of that area, it was estimated that there would be approximately <br />$$15,000.00 of taxes developed. The City, County and School District <br />taxes would be applied against the captured value in the tax increment <br />district. Relating that to current money of 12% over 8 years, which <br />Mr. Chenoweth felt was quite high, but using the maximum and being <br />very conservative, this would actually finance about $4,000,000.00 <br />of bonds for this type of improvement. He suggested that the new <br />City Hall could be included in the district and provide for some <br />street and storm sewer construction. The matter had been checked <br />thoroughly with Briggs and Morgan and they advised it is possible <br />to use the money for storm sewer construction outside the district <br />(for connection to the St. Anthony Storm Sewer). • <br />He assured the people that property owners in the district or outside the <br />district would still pay the same taxes, the difference being that the <br />captured value of the new area is put into a special fund to pay back the <br />bonds. He explained that this can only go over a 10 year period with 8 <br />increments and at that time the new value of the area would be distributed <br />to the City, County and School District. <br />Mayor Warkentien explained that the use of the tax increment financing <br />would necessitate a public hearing as not only would the City of Falcon <br />Heights forego for 10 years or 8 increments receiving taxes on the im- <br />provements, but also, the School District and the County would be in- <br />volved. Clerk-Administrator Barnes inquired as to whether or not the <br />funds could be invested to generate more revenue into the special account, <br />and was assured that the funds can be invested. <br />Mayor Warkentien also informed that in conjunction with the Comprehensive <br />Plan (mandated by Metropolitan Council) it was highly recommended that <br />the City solve the Falcon Heights drainage problem through a joint effort <br />with the City of St. Paul, University of Minnesota, State Fairgrounds and <br />Falcon Heights. This is a step in that direction and is one that the <br />City might otherwise never be able to afford. <br />MAYOR <br />WARKENTIEN <br />FISCAL CON- <br />SULTANT <br />CHENOWETH <br />MAYOR <br />WARKENTIEN <br />Larry Stowe informed that several members of the Task Force desired to LARRY STOWE <br />be heard to express their opinions. Mr. Stowe then commented on the <br />storm sewer discussion, agreed it was a fine thing to hope for, but <br />that it is no where near a reality at this time, and that the proposed <br />plan should not be approved on the basis that something that is in the <br />future. <br />Richard Gay, 1930 Summer presented to Council computations he had done RICHARD GAY <br />on possible taxes to be derived from the proposed project. He explained 1930 SUMMER <br />