Laserfiche WebLink
MINUTES <br />SPECIAL CITY COUNCIL MEETING/PUBLIC HEARING <br />AUGUST 4, 1982 <br />PAGE 4 <br />Councilmember Ciernia asked if the University had been approached for <br />permission to do the project next year to which Engineer Schunicht re- <br />plied that the University will allow the project this year or next. The <br />Engineer also advised that if only the western section were approved, the <br />St. Paul connection charge might be reduced to $173,000 but he did not <br />have a definite commitment. St. Paul must be approached with a definite <br />plan. <br />Mark Ascerno, 1871 Tatum, made the following comments: (1) he personally <br />objects to the inclusion of Tatum and Lindig in the project as there is <br />little or no benefit, (2) presented a petition to the Council from the <br />people in the Tatum/Lindig are opposing inclusion in the project, (3) <br />raised concerns about the advisability of increasing taxes in today's <br />economy when there are alternative ways to accomplish the goal of taking <br />care of the water, and (4) it would be most prudent to wait and see if <br />the Hawkins/Hermes area will be developed and look at tax increment <br />financing at that time. <br />Engineer Schunicht felt that tax increment financing is still possible <br />for the project if a developer does come in and that possibility has not <br />been eliminated, but delayed because there is no developer at present. <br />Fiscal Consultant Chenoweth stated that the reason for the establishment <br />of a storm sewer district was that the assessment policy of the city <br />has been to assess 100 percent for any improvement project, and that <br />assessment could not be abated from tax increment revenue. Under this <br />financing plan, the policy has been changed to assess the 20 percent <br />minimum and 80 percent of the cost will be a general levy. The tax <br />increments would have reduced the tax levy for the area, however, the <br />problem at present is with timing, as he was not sure that tax in- <br />crement financing could be used to finance a project which is already <br />in progress. He was of the opinion that the tax increment district <br />would have to be formed at the conception of the project. <br />Councilmember Larson inquired about the bond climate and wondered if <br />there would be any difficulty in selling bonds to which Consultant <br />Chenoweth replied that he felt there would be no problem at this time <br />and that with a ten year bond issue the interest rate would probably <br />be about 10.3 percent. <br />Councilmember Ciernia asked what the disadvantages would be if Council <br />postponed the sewer hook up until 1983 and Engineer Schunicht replied <br />that he felt the contractor's bids had come in low and if construction <br />picked up there might be a possible ZO percent increase in prices in <br />another year. He explained that it is very difficult to predict what <br />the price increase would be since there is a tight completion date and <br />a tough project. <br />Councilmember Larson asked if any of the construction companies felt <br />the completion date would be difficult to meet and she was advised <br />that three contractors did not bid due to the fact that they could not <br />meet the dates without adding extra crews. <br />+~ h ~/i1 <br />i <br />CIERNIA/ <br />SCHUNICHT <br />MARK ASCERNO <br />1871 TATUM <br />SCHUNICHT <br />FISCAL <br />CONSULTANT <br />CHENOWETH <br />CARSON/ <br />CHENOWETH <br />CIERNIA/ <br />SCHUNICHT <br />CARSON <br />