03-24-99 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL MARCFI 24, 1999 ECONOMIC The City Administrator reported that Dick Bia~ini is working with C.I. DEVELOPMENT Title on the possibility of relocating them in a new office development on on the former St. Paul Water Department property on Rice Street. The development Bia~ini is proposing for this site would be strictly office use, therefore, it would not be possible to create a Tax Increment Financing District for this property. Biagini has put together some numbers and is anticipatin~ that the City would provide a ten-year tax abatement on the City's share of taxes. The Administrator reported that Pat Daulton from C.I. Title has indicated that they would like to stay in Little Canada. However, the numbers that Bia~ini has given him do not work and he is seeking an additional $125,000 of assistance from the City to make the project economically feasible, in addition to the ten-year tax abatement that Bia~;ini is asking for. The Administrator reported that he explained the problems in the City's providing $125,000 of assistance without the existence of a TIF District. The risk is that C.I. Title will relocate to another City, which would be a loss to Little Canada. The Administrator reported that he has not seen any detailed financial analysis for the project. He also pointed out other sites where TIF Districts already exist and the City would be able to work with them. The Administrator indicated that at this time he would be hard-pressed to come up with a recommendation for why the City should provide C.I. Title the $125,000 in assistance as well as the 10-year tax abatement. Fahey indicated that he was not interested in contributing anythin~ to a development that the City could not recoup. LaValle agreed. Morelan suggested that perhaps an option would be a lower-than-market- rate loan, however, he was not sure that would be wo~thwhile for the developer. Fahey felt the Administrator's position was on-track and suggested that Biagini and C.I. Title rework the numbers and try to make a project work. Don Ga~ne asked about redevelopment activity in both the Rice Street/Little Canada Road area and Country Drive. The Administrator reported that there is a development group working on the south side of Rice Street and Little Canada Road. They are looking at a 12 acres development that would include a theater as well as retail and office space. This development group is working with a theater on the lt