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MINUTES <br />CITY COUNCIL <br />MAY 22, 1991 <br />The City Administrator reported that it appears there <br />is enough TIF surplus to deal with one property. The <br />issue for the Council is, does the City want to get <br />into the acquisition of the homes without having the <br />next two phases tied up. <br />LaValle asked if there was other financing that Malsam <br />can obtain. Malsam replied that there was not. <br />The City Administrator suggested that he make a couple <br />of contacts to determine if there is any interest by <br />other banks in refinancing the Malsam property. <br />Scalze asked where the TIF surpluses will come from if <br />the City were to buy-out the three residential homes on <br />Country Drive. <br />The City Administrator reported that LEB Development <br />would acquire the property for Phases II and III. The <br />City would be involved in the write-down of property <br />acquisition costs for the developer to a level of $1.35 <br />per square foot. Surplus tax increments from Phases I, <br />II and III would be used to purchase the three <br />residential homes on the front end speculating that <br />Phase IV would occur on that site. The City <br />Administrator reported that it is his understanding <br />that all three of the owners of the residential homes <br />are willing to consider a City buy-out of their <br />property. <br />Blesener suggested that the only thing the City can do <br />at this point would be to authorize the City <br />Administrator to work with Mark Malsam and make some <br />contacts to determine if there is a bank interested in <br />refinancing the Malsam property. <br />Scalze agreed, and pointed out that her impression is <br />that the City Administrator is uncomfortable with the <br />buy-out of one of the properties at this time and would <br />prefer to see Phases II and III underway before that <br />happens. <br />The City Administrator pointed out that with regard to <br />discussion about TIF surplus funds, the City has <br />received no funds as yet. Taxes will not be collected <br />on the Phase I building until 1992, and the City will <br />have to pay bonded debt with those funds. However, it <br />is projected that there will be a surplus in the funds. <br />The Administrator also asked how speculative the City <br />wants to be, indicating that he had a problem buying <br />out one property and not the other two, especially with <br />Phases II and III not underway. <br />Page 15 <br />