08-26-87 Council Minutes - Laserfiche WebLink

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r~zr~urEs City Council Sept. 2, 1987 Pelstring suggested that the Policy Considerations address redevelop- ment broadly stating that the City's priorities may change over time. The group then reviewed the Policy Statements presented by Pelstring. Pelstring noted that the first statement was a broad one. The second statement set a minimum size of the issue for tax increment bond at $100,000. Pelstring felt that while the amount was small, it was manageable, and if the 15% figure is what is decided on as outlined in the third statement, the minimum size for a project in which tax increment financing would be used is about $750,000. Pelstring noted that the City could combine a collection of smaller projects that would generate $750,000 or more in new development to meet these figures. Pelstring explained the third statement and felt the key was to keep Tax Increment Financing within 15% of the market value of the project. Pelstring felt the 10% financing to the developer was consistent with what other cities are doing and will be attractive to developers. However, some communities do provide 15% to developers. Blesener asked if 15% was high. Pelstring replied that it was not, noting that the bond issues are generally 10-year bond issues. However, Pelstring felt that the third statement should include a comment about the ability of the project to be self-supporting. Collova asked if the 5% as outlined in the third statement for land acquisition for parks relieved the developer from paying a park charge. Scalze replied that that could depend on how attractive the development was to the City. Pelstring noted that other cities set aside this money for public improvements, not limiting it to park acquisition. This would give the City more flexibility. Pelstring reported that Vadnais Heights uses a figure of 3%. Blesener commented that of the 15% he felt 10% should go to the project and/or public upgrading for the project and up to 5% should be set aside for other public improvements, which could be parks or the City's sewer or water system~ for example. Pelstring noted that the City would negotiate a project based on the Policy Statements. Pelstring also suggested that the next step might be to prepare one master development district for the City for Tax Increment Financing, rather than having separate districts which may need to be amended whenever a project is approved. Pelstring stated that the City would have one Tax Increment Development District and then could have several Tax Increment Districts under the master Development District. Page -2-