10-10-2018 Council Packet - Laserfiche WebLink

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MINUTES CITY COUNCIL WORKSHOP SEPTEMBER 26, 2018 2 Mr. Hagen stated that he is proposing an Economic Development Tax Increment Financing (TIF) District, which captures the increased portion of the city, county and school district property taxes. Keis noted that the business had originally indicated they were not looking for any other jurisdictions taxes. The City Administrator stated that he thinks they may not have understood the process when they said that. He noted that it would qualify for an economic development TIF District. Mr. Hagen stated that there are limits to tax abatement and the City may want to keep that for other future projects. Keis asked if it is worth it for the business to go through with setting up a TIF District that will not generate a huge amount of money. The City Administrator stated that by partnering with a new business this way, it shows the City wants to be a partner with them, and the property tax value may continue to increase even more than the original $1.5-$2 million. Mr. Hagen stated that it also helps with financing since it keeps their taxes more level for a number of years. The City Administrator stated that all of the discussion so far has been with the CBRE brokers, and there can be further analysis on the businesses actual financial needs. Keis noted that this business is a high water user so the City would generate additional revenue from that. The City Administrator stated that there was a Business Subsidy Policy adopted by the Council in 2007. He explained that this business’s starting wages are a moving target and employees are eligible for two to three wage increases within the probationary period which can raise the lowest wage to $12.00 per hour. He stated that it appears they are paying market level wages. Montour asked what the business’s timeline is. The City Administrator stated that at this point they cannot move forward until they receive the City’s support. He noted that the resolution of support for their DEED Jobs Creation Fund application, and the agreement for a major Sewer Availability Charge (SAC) credit transfer are ready for Council action if the Council chooses. Keis noted that the brokers have indicated that they would like to have some answers from the City by October. Montour asked what happens if the City starts the process for a TIF District, but then residents are against it. The City Administrator stated that the property is zoned for this business to move in and operate with no additional city approvals required. Mr. Hagen stated that the City can set up the TIF District, but then opt out of funding any time prior to final signatures. He noted that the Council could put some conditions on the site operations into the development agreement that would be in play for the nine year life of the district. Fischer stated that he is fine with the SAC credit transfer and DEED support, but is not comfortable with using tax abatement. Montour noted that by giving them