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MINUTES <br />City Council <br />July 22, 1987 <br />Thunder <br />Bay TIF <br />(Cont.) <br />another tax increment project. <br />Scalze asked if this is done in other cities. <br />Voto replied that it is generally done. <br />Fahey pointed out that the Planner has indicated that this is what <br />the State Legislature is trying to avoid. Fahey questioned the <br />additional cost in setting up one district, pointing out that the <br />City has already set up the 7 tax increment districts. <br />Voto pointed out that in the Thunder Bay TIF, the City is raising <br />$40,000 through tax increment financing, and it could raise $~0,000 <br />with a lot less expense. However, if the City is going to use TIF <br />as a tool, it should maximize this option by having one TIF district. <br />Fahey asked if the cost of combination made the proposal worthwhile. <br />Dan 6dilson, City Planner, noted that the work done would not necessarily <br />be lost, but the districts would be restructured into a single district <br />with larger boundaries. GJilson estimated the cost of the combination <br />at $2,000. <br />Blesener noted that the City also has the option of waiting 5 years <br />before it amends its TIF districts, so if another project came along <br />where it would be beneficial for the City to combine the districts, <br />the City could do so within that 5 year time period. <br />4+1i 1 son agreed. <br />Wilson also noted that a combination of the districts gives the City <br />the option of spending tax increment monies from one project in other <br />projects. This likelihood is less with the smaller districts. <br />However, ldilson stated that he was uncomfortable with TIF money <br />from a residential project being spent on a commercial project, <br />but was in favor of money from one commercial project being spent <br />to assist another commercial project. Wilson noted that while the <br />City had 5 years in which it could change its boundaries, the State <br />Legislature could change this provision at any time. <br />Scalze asked if excess TIF funds could be used in a project that <br />the City would participate in. <br />Voto replied that it depended upon the situation and geographic <br />district. <br />Voto again stated that the purpose of his recommendation was to <br />maximize the tools available to the City. <br />Scalze asked if the City could use TIF money to purchase land. <br />Page -7- <br />