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?lanni no Commission <br />April in, 1 nnn <br />Tax <br />Increment <br />inancin2 <br />(Cont.) <br />fleLona1s noted at a recent Council rieeti nn the City Attorney <br />indicated that under tax increment financinn, condemnation was not <br />easier. However, BeLonals reported that a City staff member informed <br />him that condemnation was easier under tax increment financinn. <br />The Planner replied that this was incorrect and both the City Attorney <br />. and his office agrees that condemnation is not easier under tax <br />increment financinn. The Planner pointed out that the City can only <br />condemn land for a public purpose such as utilities or roads. This <br />would have to be shown under tax increment financinn as well <br />The Planner pointed out that with tax increment financinn, a developer <br />will present a development proposal and may be able to obtain assistance <br />from the City for putting in public improvements. This May make a <br />project feasible, where without tax increment financing it may not be. <br />Tax 1norelent financing allows the City to put in roads, and utilities <br />and assemble property. The taxes generated from the property then goes <br />to pay off the debt. The developer also gets a lower interest rating <br />because he uses the City's bond rating. <br />tlr. Rlesener commented that tax increrlent'financing will help a property <br />owner sell his property. Blesener noted that there are a large number <br />of for sale signs in the City. <br />neLonals asked why the city is pushing to net land level oned. <br />The Planner replied that the land will then produce more taxes and <br />may be less of a maintenance hazard or eyesore. The Plannor stater: <br />that by designating tax increment districts does not mean the City <br />will be swamped with development proposals. <br />"r. Clesener stated that it i5 a statement to developers that the <br />City would like to see our developable property develoled with quality <br />projects. The City would be willing to help in some way. Blesener <br />pave for an example the Centerville Road area. Blesener stated that <br />the City could help net the property owners together in this area. <br />Also, there are waterrlain, assessments on some of the properties, that <br />the City might be able to asslirie under tax increment financing. The <br />City may also he able to write down the cost of the land for the <br />developer and nut in some of the utilities. <br />nr. gel onai s anai n brought up the condemnation issue and whether or <br />not it was easier to condemn under tax increment financing. <br />Mr. Rlesener reported that the sane criteria for condemnation applies <br />under tax increment financing. However, the City might look at <br />condemnation differently under tax increment financinn_ in order to <br />get a 'whole package put together. <br />r. Costa brought no a case where one property owner night be holding <br />out for'an inflated price for his property. <br />Pane -6- <br />