10-23-90 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 23, 1990 also reported that costs associated with the trunk sewer were to have been spread out over the benefiting properties, and not just his 11 lots. Boosalis passed out another hand-out labeled "Original Intent" wherein he calculates bond and project costs coming up with a TIF surplus of $25,946. Boosalis recommended that this surplus be divided on a per lot basis to reduce the assessment, resulting in a revised assessment amount of $11,634. Boosalis pointed out that the TIF Agreement states that the TIF surplus would be used primarily for payment of the bonds and interest thereon. Fahey stated that it was not the Council~s understanding that all the TIF surplus would be used for this project. Fahey pointed out that this was not indicated in the Development Agreement which indicates that Boosalis would agree to an assessment of $13,000 per lot. Boosalis pointed out that the TIF Agreement tells the Legislature how the City will use the excess increment. Boosalis pointed out that there is actually enough surplus to reduce the assessment to $10,010 per lot. Boosalis also pointed out that under his first proposal to have Rosewood Drive come in from County Road C further east, the County installed a water tap on County Road C for the project, and his lots were assessed $650.00 per lot for a waterline that is of no use. Rosewood Drive was moved over because of the change in the way the TIF was to be allocated. Boosalis again stated that $10,000 to $11,00o was discussed as a reasonable assessment for the lots, and Boosalis felt that the savings should be passed on by the City and the assessment reduced to the $11,634 he is proposing. Fahey again pointed out that the Development Agreement contemplates a maximum assessment of $13,000 per lot. Blesener replied that the Council indicated that the assessment would not be more than $13,000 and that TIF would pick up any costs over that amount. Now the Page 2