09-06-89 Council Special Minutes

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MINUTES CITY COUNCIL September 6, 1989 Blesener felt that the cost of the assessments for the homeowners should be written down to an acceptable level so that the homeowners can realize some benefit from the sale of their property. Blesener again stated that he felt the maximum assessment should be $12,000 to $13,000 per lot. Boosalis stated that this was agreeable to him as long as the overall economics of the project worked. Fahey pointed out that if the project works, there will be surplus to support a write-down of the assessments, and there would still be a TIF surplus. Blesener stated that once the TIF obligation is paid-off, the TIF district would be cancelled and taxes would go to their normal distribution. Wilson stated that it would be his guess that additional TIF projects would come along and the surplus would be directed to those projects. Fahey asked if the project was feasible with the TIF as outlined by Wilson. Wilson replied that it was feasible, if the City is willing to sustain the risks involved, whiah he felt were substantial. However, there are not a lot of alternatives available. Scalze suggested that the City Auditor review the TIF package. Wilson reported that the City Auditor is aware of the project and does have some concerns about it. Pierce pointed out that while Gardner Bros. Homes is interested in the residential lots, they have only committed to one lot. Boosalis reported that Gardner Bros. has agreed to purchase his 11 residential lots and will finalize the purchase of two lots and build a spec home. Fahey pointed out that the shortfall is that the City will carry the interest on the assessments for the Boosalis lots until they are developed. Pierce reported that there is no guarantee that these lots will be developed. Page 12