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MINUTES <br />CITY COUNCIL <br />September 18, 1989 <br />dollars after the City has satisfied its needs, if those <br />dollars could go to make up his shortfall. <br />Fahey pointed out that the surplus may be needed to rehab <br />the County Road C properties. <br />Boosalis reported that the Development Agreement being put <br />together by Wilson is asking that he commit to a tax rate of <br />$2.68 per square foot for the shopping center. Boosalis <br />pointed out that the new tax bill may reduce property taxes <br />for commercial buildings, and suggested that if that happens <br />his commitment be lowered. Boosalis pointed out that he <br />needs to stay competitive in the marketplace in order to <br />rent his building, and if tax rates are lowered, his <br />building would be vacant if he had to pass a$2.68 per <br />square foot rate on to his tenants. <br />Wilson stated that the cash flow could be structured at a <br />rate of $2.30 or $2.20 in taxes per square foot and still <br />work. If the taxes on commercial do drop, Wilson stated <br />that he had no problem amending the Development Agreement to <br />address this concern. <br />Voto suggested that Mr. Boosalis guarantee the City a <br />minimum market value on the property so that if taxes are <br />lowered the City will be protected by the minimum market <br />value. Voto suggested a minimum market value of $720,000. <br />Boosalis stated that he was agreeable to this as long as he <br />could verify that the numbers would work. <br />Scalze pointed out that if Boosalis does not purchase the <br />Krienke house, that property is non-conforming and would be <br />difficult to redevelop and meet setback requirements. <br />It was pointed out that the property only has about 66 feet <br />of frontage. The other three commercial lots on County Road <br />C have about 75 feet of frontage each. Therefore, if these <br />properties were developed as commercial, they would most <br />likely need to be combined. <br />Fahey again pointed out that any excess increment from the <br />bond issue would likely be needed to help rehab these <br />properties. <br />The City Engineer reported that he will be coming in with <br />some drainage alternatives for the area that may prove to be <br />less expensive. <br />Page 7 <br />