04-23-1986 Council Agenda - Laserfiche WebLink

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71.lnninr - ^,on�!issinn \aril 10, 1 "''5 Tax Increment Financing (Cont.) 1r. ^eLonais stated that the Planning Commission is concerned with Protection the homeowner in the City. Pe onais asked if there was R -1 property included in the other development districts. The Planner replied that the property may ho used as R -1, but it is not zoned as such. Rlesener pointed out that this '11nbt he a good example, in that a developer could not afford to purchase this property because of the home nn it. The City could assist in the purchase and sell the property to the devolooer at a reasonable price. The City 'would then float a general obligation bone and pay for the bond through the increased tax evaluation of the property over a maximum of 10 years. Also, any fees of the planner, attorney or administration foes would he charged back to the bond. Interest and principle on the bond for the first three years, would al so be included. Costa again asked what would happen if a property owner did not ''ant to sell. Rlesener replied that the City would talk to the property owner and see what his feelings -sere. Rlesener stated that there would he a chance that the development would not be approved. However, the 01 ty could try to condemn the prooerty. Mr. Costa felt that the City was netting into bin business. Rlesener stated that a public hearing has to be 'held to approve the districts, and teen a hearing would have to be held on each project. Rlesener felt that the City has to loo': ahead and be prepared. Rlesener pointed out that there is a lot of property for sale in the city. Rlesener also pointed out that developers can po across the street and net assistance from neighboring cities. ne2ace pointed out the fiscal di soaratl es situation. Rlesener explained that there was a 50 -an split with 50ti of tax revenues on co)"rlercial and industrial development noinn to the City and 49% into the fiscal disparaties pool. The City then nets R00 of the 400 back. Therefore, the City is losing about 10 to 120. The City has no control over the fiscal disparaties situation. ';r. Davison recommended that 21strict 7 as proposed 5e eliminated from the Tax Increment 'Financing District proposal based on the fact that the property in that district is zoned R -1, which is in compliance with the Comprehensive Plan and based on the fact that the Commission does not feel tax increment financing is appropriate for that area. Motion seconded by ''r. °erlinoer. motion carried 5 - 0. Pane -0-