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r~zzNVT~s <br />City Council <br />August 9, 1989 <br />to both the City Council and A4s. George. Fahey again stated <br />that the Building inspector and City Engineer should work <br />with the property owners in the area regarding the proper <br />grades that are necessary for the drainage ditch to flow> <br />BOOSALIS Nick Boosalis appeared before the Council to discuss Tax <br />TAX Increment Financing for his commercial and residential <br />INCREMENT project at County Road C and Rice Street. <br />F I N11NC I NG <br />I~oosalis reviewed the past history of the project and the <br />various development schemes that were considered. i~oosalis <br />again reviewed the most recent project being considered <br />o~hich includes the development of the residential property <br />to the east and includes a residential road coming in from <br />County Road C on the western edge of the residential <br />property. <br />floosalis reported that he has reviewed the economics of the <br />project and has de~ermined that in order to make the <br />residential portion of the project financially feasible, he <br />is requesting that the City improve the residential road ancl <br />assess the cost back against the benefited property. In <br />addition, Eoosalis requested that the City pick-up the <br />interest cost on the assessments for his residential lots. <br />Boosalis reported that he estimates the assessment cost to <br />be between 512,000 and 515,000 per lot, and he is proposing <br />that this amount ~•iill be paid for each lot at the time a <br />building permit is pulled for the lot. Therefore, the City <br />would have to pay the cost o£ interest on those assessments <br />until the time that a building permit is pulled on the lot. <br />Soosalis reported that he controls 11 residential lots, and <br />the property owners on County Road C would control the <br />remaining residential lots. <br />Fahey stated that he felt the proposal was a fair one and <br />pointed out a~ithout the development of the residential area <br />to the east, the City woul.d be left with a strip o£ <br />residential property on Rice Street that would be inadequate <br />to provide access to the residential property lying to the <br />east. Pahey estimated the interest costs on the assessments <br />for the 11 lots to be 511,000 per year. <br />Boosalis reported that he has a builder interested in <br />developing the lots, and anticipated that the lots would <br />develop fairly quickly. I3oosalis stated that he is <br />requesting that the City pay the interest on the assessments <br />and pointed out that the assessments would be a declining <br />balance as the lots are developed. <br />Page 9 <br />