10-23-90 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 23, 1990 costs. Boosalis did not believe it legal to apply TIF surpluses from this project to other districts in the City. Larry Marofsky, attorney representing Boosalis, agreed. The City Administrator stated that Bond Counsel would disagree, pointing out that the City has set up a broader Development District in order to allow the pooling of resources generated from the various TIF Districts, Fahey asked if it were financially feasible to reduce the amount to be assessed to $11,634 per lot. The City Administrator replied that it is financially doable. A minimum of $10,010 per lot assessment is needed to cover the debt service on the bond. However, surpluses in the TIF District would be minimal. Fahey stated that if the City adopts the reduced assessment, Mr. Boosalis should withdraw his objection. Boosalis agreed to withdraw at the reduced amount. The City Administrator stated that based on the appraisal of the property and the Development Agreement with Mr. Boosalis, his recommendation would be to assess at a cost of $13,000 per lot. The Administrator pointed out that a write-down is being provided to the property owners, and the appraiser has indicated that the benefits to the properties meet or exceed the $13,000 figure. Fahey asked the cost of the storm sewer. The City Administrator replied that the truck storm sewer improvement cost was just over $37,000. Blesener stated that he supported the $11,634 per lot assessment since the residential project was Council-initiated. Fahey stated that he did not disagree, but pointed out that the $13,000 figure was discussed and the properties are receiving the benefit of the trunk storm sewer improvement, the cost of which is being paid with TIF surplus funds. Blesener stated that he believed it was the Council's intention to use any surplus TIF funds to reduce assessment costs for the property owners. Page 4