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MINUTES <br />CITY COUNCIL <br />September 6, 1989 <br />Fahey replied that the residents would have input at <br />that meeting. Fahey suggested that overheads be <br />prepared for the meeting so that everyone will have a <br />clear picture of how drainage will flow, and that a <br />detailed cost estimate be prepared for everyone's <br />information. <br />Blesener pointed out that with a$350,000 project cost, <br />the assessments for the project will amount to <br />approximately $18,000 to $20,000 per lot. Blesener <br />stated that he could not support such an assessment for <br />the seven property owners on County Road C that would <br />benefit by this improvement. Blesener felt that an <br />assessment of $12,000 to $13,000 would be reasonable, <br />but an $18,000 to $20,000 assessment would result in <br />the property owners givinq their property away for the <br />cost of the assessment. <br />The City Engineer reported that there will be an <br />assessment on the shopping center which could result in <br />an assessment equivalent the assessment for two to <br />three of the single-family lots. <br />Dan Wilson, Northwest Associates, reported that he has <br />looked into the idea of the Tax Increment Financing for <br />the project generating additional increment to support <br />a write-down of the cost of the assessments for the <br />single-family lots. Wilson stated that he did an <br />analysis of the TIF for the Thunder Bay project, and <br />that project is very healthy and will support some <br />surplus dollars. <br />Wilson submitted an analysis of the amount of tax <br />dollars the single-family homes in the Boosalis project <br />will generate and reviewed this information for the <br />Council. Wilson stated that assuming a certain <br />build-out rate, there could be surplus dollars <br />available in the TIF project that will support a <br />write-down of assessment costs. <br />Wilson stated, however, that there are risks associated <br />with these dollars in the assumption that the <br />single-family homes will be built. The City would be <br />going in with no guarantees and would have to sell <br />bonds that will include a deficiency levy for whatever <br />portion of the package is not guaranteed. Wilson <br />pointed out that TIF bonds are outside the City's levy <br />limitation. Wilson also pointed out that if the homes <br />are not built as projected, the City taxpayers will <br />have to pay the cost of the bond issue. <br />Page 11 <br />