08-24-88 Council Minutes - Laserfiche WebLink

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MINUTES City Council August 24, 1988 Conley CUP The foregoing resolution was duly seconded by Mr. Blesener. (Cont.) Ayes (5) Scalze, Blesener, Fahey, LaValle, Collova. Nays (0). Resolution declar~ed adopted. This resolution appear•s in Resolution Book No. 20, Page 360. TIF Dan Wilson, Nor~thwest Associates, presented to the Council a draft copy Distr•ict of the Tax Increment Financing Plan for the Yor~kton Development. Wilson No. 2 pointed out that the plan contains two cash flow analysis for the pr~oject, Yorkton and TIF for• the Yorkton Project is feasible. Development Wilson repor~ted that the Gardner• Br•os. project has changed since it was fir~st presented to the Council. Gar•dner• Bros. first planned to construct a 3-story office building and some office/war•ehouse buildings. Those plans have been changed to constr•uct only the office/warehouse buildings at this time with construction of the 3-stor•y office building at a later• date. Due to this change and also the economic development factor~ used by the County, the Gardner Bros.' pr~oject no longer works. Wilson reported that the County is in the process of r•eviewing its application of the economic development factor to TIF pr•ojects, and, hopefully, will change their position on this issue. However, Wilson pointed out that ther•e are possible changes in the TIF law which, if appr~oved, would r•esult in TIF only being used for industrial pr•ojects. If that happens, the Gardner Bros.' office building pr•oposal would no 1 onger~ qual i fy. Scalze asked who the tenant for the Yorkton pr~oject would be. Larry Lee, Yorkton Ltd., r•eplied that North Star Tur•f would be the tenant. Or•iginally the tenant was Gould Company, however, that firm has been reorganized to for•m North Star• Turf. Wilson r•eported that Yor•kton Ltd. has requested $140,000 in TIF assistance and it was Wilson's recommendation that the bond issue be sold for~ $200,000. Wilson reported that the pr•oject will suppor~t up to a$280,000 bond issue. Wilson stated that he has not identified any use for the additional funds, however•, the City can collect them whether the use is identified or not. The fundscould be used for• public impr~ovements, such as the improvement of DeSoto Street, if the Council so desir•es. Blesener pointed out that the funds could also be r~eturned to the County. Fahey asked if the funds could be used to support the Gardner Br•os.' project. Wilson replied that they could, but pointed out that the Gar•dner• Br•os.' pr•oject will support itself if the economic adjustment factor issue is resolved. Page -13-