06-24-87 Council Minutes - Laserfiche WebLink

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MINUTES City Council June 24, 1987 Soil Scalze pointed out that P1r. Butler was aware of the results of the Qorings soil borings on the Sch~aeitzer property and plans to build on this Centerville site. Road Area (Cont.) Frattalone again stated that by using spread footings, the soil would support a 3,000 pound building without soil corrections. Tax Dan Wilson, City Planner, submitted to the Council for review Increment Tax Increment Financing District Plan No. l. Financing District Mayor Fahey opened the public hearing on this plan. P1 an ~!o. 1 6•lilson reported that the plan covers the Thunder Bay development A,genda district which is a project that the City is getting involved Item No. 7 in and acquiring a single-family residence. The developer of the Thunder Bay 2nd Addition will then purchase the property from the City at a reduced price. The difference, plus fees, will be made up out of the tax increment funds generated by the 41 lot subdivision which is the Thunder Bay 2nd Addition. Plilson explained that using a conservative estimate, the increment will be paid off by 1990, however, under an economic development district, the City has 8 years to collect enough money to pay off the debt. ~lilson reported that he has met with Frank Frattalone, the developer of Thunder Bay 2nd Addition, and has arrived at the terms and conditions of the d.evelopment contract. The contract spells out the details for acquisition of the property as well as protects the City should the developer not complete the project. Fahey explained that the tax dollars used to pay off the increment are tax dollars the City would not otherwise receive, but would go to the County anci School District. Ydilson pointed out that afi.er the development is completed, the value of the priiperty wiil incre~se substantially. P4rs. Pelton, Eli Road, asked ~~~hy the City was getting involved in financing private business. Fahe,y replied that the project is a rehabilitation project in a sense as an older home will be removed and a new home developed on the property. Fahey pointed out that tax increment financing can be used for this purpose to improve the tax base of the City, and pointed out as an example the possible use of tax increment financing to improve c+evelopment along Rice Street. Fahey pointed out that this is at no cost to the residents of the City as the funds used are those that would normally go to the County or School District, and is an opportunity for the City to economically improve itself. Page -8-