12-02-97 Council Special Minutes (2)

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MINUTES CITY COUNCIL DECEMBER 2, 1997 increased by Ramsey County. The City has no control over the valuations established by the County. The Administrator reported that the County has indicated that approximately 16% of residential properties will see no valuation increase for 1998, 72% will see up to a 5% increase, and 12% will see a 5% to 10% increase. Don Gagne, 2828 Condit Street, reported that in 1991 his property taxes were $3,800 per year and now he is paying $5,700. Gagne felt that property taxes have risen at a faster pace than other expenses, such as utility expenses. Gagne expressed concern with the City's recent property purchases, pointing out that the City is taking property off the tax rolls and the rest of the property owners in the City have to make up the difference. Gagne estimated that the Bud~et Power site was paying at least $20,000 per year in property taxes. Gagne pointed out the three homes that the City purchased in his neighborhood during the past year, and also noted that City's denial of the redevelopment of the Grumpy's site via a gas station/convenience store. Ga~ne noted that there had been interest in the redevelopment of the Guerin property at Rice Street and Little Canada Road with a Holiday store. Gagne estimated that the result of all these actions is approximately $200,000 less in property taxes for the City, which means that a family of four is paying about $80 more in property taxes per year. Ga~ne felt the City was buying property with no concrete plans for redevelopment. Gagne felt that the people who will make redevelopment happen are in the private industry, and if redevelopment was goin~ to occur it would occur without the City doing anything. Gagne pointed out that the City paid approximately $250,000 for two properties on Condit Street. Gagne stated that he would happily sell a half-acre of his property for that price. Gagne pointed out that taking property off the tax rolls is adding expense to the rest of the taxpayers in the City. Gagne felt that before the City takes additional property off the tax rolls, it should have a better plan for redevelopment. Fahey felt that the problem in the past has been that the City has not had a vision. Fahey stated that he was concerned about long-term growth as well as takin~ properties off the tax rolls. Fahey pointed out that the City's impact on the property tax bill is 14%. Fahey indicated that all cities trying to attract development get involved.