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MINUTES <br />CITY COUNCIL <br />February 14, 1990 <br />parcels could be increased, rather than the other <br />taxpayers in the City picking up the balance. <br />Collova suggested that the cost difference between the <br />residential rate and the commercial rate be deferred <br />for the properties that will not be redeveloped for a <br />few years. <br />Fahey pointed out that one of the disadvantages of <br />maintaining a home on commercial property is the <br />additional cost burden commercial property bears for <br />street improvements. The advantage is that the <br />property accrues commercial value. Fahey stated that <br />he did not believe the property should be assessed at a <br />residential rate and have the City subsidize the <br />property owner for the difference between the <br />residential and commercial rate. <br />Collova suggested that the property be assessed at the <br />residential rate with the balance of the cost for the <br />commercial rate deferred until the time the property is <br />sold as commercial. <br />Fahey pointed out that if the City defers a portion of <br />the assessment, and the property is not developed, at <br />some point the City will have to pay the assessment <br />from the General Fund. <br />Fahey stated that in the 12 years he has been on the <br />Council he has not seen a situation where a road was <br />put through a commercial area and the property owners <br />were assessed at the commercial rate. Fahey did not <br />believe that is a good policy. Fahey felt the property <br />should be assessed at the commercial rate and stated <br />that he was confident that the area will develop since <br />the incentive is there through the use of TIF. <br />Ed Nadeau pointed out that at the previous improvement <br />hearing on Country Drive held a couple of years ago, <br />the proposal was to assess the improvement cost at $34 <br />per front foot. Nadeau pointed out that there is only <br />one side of the street that can be assessed. <br />The City Engineer replied it is true that the majority <br />of property along Country Drive is only on one side of <br />the street. <br />Mr. Zender asked the time period for paying back the <br />assessment and the interest rate that would be charged. <br />Page 6 <br />