09-25-96 Council Workshop Minutes

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MINi1TES CITY COUNCIL 5EPTII~IBER 25, 1996 the re-use of proceeds from TIF Districts 1-1, 1-2, and 1-3. The Administrator felt $4 per square foot was easily attainable and in reality could be over $6. Fifield reported that the City would have two years after acquiring the property before it would have to be sold, and development would not have to occur until 1998. The Administrator reported that the City is still waiting for final review appraisals. Once those are received, the impact on the Rice Street/Little Canada Road area property acquisitions will be known. The Administrator pointed out Fifield's debt service study which shows that a 20,000 square foot building coming on line in two years would raise $950,000 for land acquisition. This is money which would require no City levy. Fifield pointed out that a$1,450,000 TIF bond could be supported through the sale of additional property, and a$1,800,000 TIF bond could be supported by bringing a second 20,000 square foot building on line. Fifield indicated the Country Drive TIF district stands alone. There are other TIF resources available to the City from the Thunder Bay, North Star Turf, and Rice at C Districts. The Administrator pointed out that $545,000 from Country Drive could be added to the Rice Street numbers. However, they would not be available for use on Country Drive. Morelan asked how much was needed for the Rice Street area. The Administrator indicated the answer to that question depends on the willingness of property owners to sell their property. The Administrator also pointed out that if one side of the Rice/Little Canada Road intersection begins to develop, this will trigger a new TIF analysis. Morelan £elt the City should push itself to get redevelopment going in the Rice Street area and put Country Drive on hold. Scalze pointed out that redevelopment of the 5