08-23-89 Council Minutes - Laserfiche WebLink

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MINUTPS City Council Auc~uet 23, 19~9 P7ro F.~uklc, ~3 road borders property and improvernent. Vd. County P,oad C, ~oi.ntecl ont that the proposed the western edge and northern eclge oL his asked lzo~~~ he ~~~ould be assessec9 Lor the road T'ahey replied that tIr, I:uick would be assessed Lor the frontage of the northern edge oi his property anc9 not £or the frontage along his western property 1ine, Palsey also pointed out that those sena.or citizens ~hat meet a.ncorne guidelines can apply for senior citizen deferrnents of ~heir assessrnents. Kukk asked if utilites ~~ould be 9.ncl.uded in the im~rovcraent, Blesener re~~licd that they would. P4ark Schultz, ?..610 Parlc Street, reported that he has been follotaing this developrnent proposal and the discussion that the Council has had ~oith reg~rd L-o Tax Sncrement Pinancinya Schultz s~as concerned that the Counc9l 9.s considerinc~ covering the cost of i.ntere~t on ~he asses>ments for the developer, ~r~hi].e the Council wil7. not do so ior the other property ovm ers ~aho will be assessec9 for the irn~rovement. Fahey agreed that the City will fund interest on the assessments for the cievelo~er on each lot untzl the lots are sold. The pzinci~~le cos't of the improvement will be assessed ~nd as buildinc~ perrnits are pulled, tkae assessments cail7. be paici, This has been discussed as part o~ the TI£ packac~e that the City is putting together ior the project. E'ahey pointed out that there are various ways that cities give financial incentives to developers, Some cit9.es give T.II~' that inclucles ~n additional increment for the x>roject, >orne cities give 7'SP assistance that includes a lurn~ sum payment to the developer up front. The City has discussecl carryiny thc i.nterest on the assessrnents because the City believes that the ].ots will clevelop quickly and the amount of interest the City ~~~i11 have to pay wi_ll be minimal. Fahey pointed out Schultz's posi.tion th~t this assistance does no~ put the homeoo~ner on ec~ual footing, ho~aeverp I'ahey pointed out that the homeosaner is not developing the are~. Schultz sta~ecl that the homeo~•mers have lived in ~l~e area anci have contri.buted to the City through their prop~erty taxes for many years. Schultz ielt tkzat the City skzoulcl give equal consideration to these homeo~•mers, I3lesener pointed out thlt the City is taking the claance that these lots caill develo~ quicltly. P,lesener pointEd out that a c7eveloper has been lined up for the lo~s. The City°s intent is to get the road base in yet this fall so tha~ lots can be marketed over the iainter. Development can begin in the spri.ng, ~nc~ if the lots develop quickly, there e~ill be relai:ively litt7.e cost to the City. Page 10