05-23-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MAY 23, 2012 $57,993.18). The Administrator reported that District Council 82 made that payment today as allowed by the Development Agreement. The Administrator reported that he has discussed the tax - exempt status issue with District Council 82 and informed them that the City would not have provided the TIF assistance if tax exempt status had been possible. He also pointed out to them that the resulting reduction in property taxes raises concern about the impact on the City's ability to provide services. The Administrator reported that District Council #82 has agreed to keep the City essentially whole and have signed a Payment In Lieu Of Taxes (PILOT) Agreement in which they agree to pay the City $10,000 per year for the next 10 years starting in 2013. The Administrator noted that District Council 82 was under no legal obligation to do so. He also reported that the initial request from the City was for $11,500 per year, but noted that taking into consideration the taxes they will still pay and factoring out fiscal disparities, the $10,000 keeps the City reasonably whole. He did note, however, that the $10,000 is frozen for the 10 year period. The Administrator reviewed the PILOT Agreement noting the changes requested by District Council 82. These include removal of references relative to their initial indication that the building would not go tax exempt, elimination of Exhibit B which shows the calculation for the $11,500 initially proposed by the City and set a comparative process for the renewal of this agreement after the initial 10 -year period, and reducing the PILOT to $10,000. The Administrator reported that the City Attorney has reviewed the revised agreement and found it acceptable. He also noted that District Council 82 has signed the agreement. The City Administrator recommended approval of the agreement as revised. Montour introduced the following resolution and moved its adoption: RESOLUTION NO. 2012 -5 -94 — APPROVING THE PILOT AGREEMENT WITH DISTRICT COUNCIL 82 AS REVISED AND AUTHORIZING THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY The foregoing resolution was duly seconded by Keis. Ayes (5). Nays (0). Resolution declared adopted. WATER The Public Works Superintendent reviewed his report dated May 17, 2012 ORDINANCE relative to an amendment he is proposing to the City's Water Ordinance AMENDMENT which changes property owner's responsibility for the water service pipe "from the water main into the house or building" to the service pipe "from 10