04-23-1986 Council Agenda - Laserfiche WebLink

Home Browse Search

°lannin Co" issinn An,ri l l r 1 <a Tax Incre'eent Rinancinn (Cont.) 11esener replied that the City could possi71y buy at an inflated price because the City wants the project to 00 in. Costa suggested that the property owner may not want to sell his property, but if he is located in the middle of other properties that are selling, his nrnnerty will net condemned. 8lesener stated that this could hannen without tax increment financinn. The Commission n,uestioned the criteria used to condemn property under tax increment financinn. r•ir. Rlesener replied that the criteria is the sane under tax increment financinn as it is without it. Herkenhoff as'<ed if the li'<elihood of condemnation was greater under tax increment financinn. 9lesener agreed that this night he correct, but stressed that the rules are not changed. Her'<enhoff as'<ed what would hannen in an instance where the City purchased land and the development fizzles out. Rlesener replied that the City 'would he responsible for whatever bonds it floats. However, the financinn for the development itself is a senarate financing nac'<age that the City would not be responsible for. Under tax increment financing, the City could float bonds for financing the property, utilities, streets or removal of delapitated buildings. r. BeLnnais pointed out that the port authority is exferiencino financial nrobleos. Rlesener reported that there aro a number of things that the City can do to safeguard its elf. Rlesener reported that sor ^e cities protect themselves by recuiring the develoner to pay un -front costs and when the nroiect is ready for occupancy, then the City reimburses the developer. "r. Rob De'tace commented that tax increm ^ent financinn is a guarantee to a developer and pointed out that the City could finance the total project. Rlesener did not believe that Little Canada would do this. Rlesener explained how tax increment financing wor'<ed. Blesener then reported that the City has decided based on the recommendation of the Economic Develonnent Committee that it is going to loot< at tax increment financinn' districts. The Council feels that the City has to be competitive with what surrounding cities are doing, and they are using tax increment financing. Tax increment financing is a process of telling developers that the City is will to 'wor'< with them and be competitive with other cities. 1.'r. Deltonais stated that he feels that the Council usually opposes inc'ustrial development nronosals. DeLonais felt that the Council should he more willing to wore; with developers. Pan -7-