04-10-2013 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL APRIL 10, 2013 Montour asked for clarification on whether Development District No. 6 or TIF District No. 6 -1 was being expanded. Ruff reviewed the map which shows the original boundaries of Development District No. 6 and the proposed expanded boundaries. He also pointed out the original boundaries of the original TIF District No. 6 -1 and the proposed expanded boundaries. He noted that it is the proposed expanded boundaries of TIF District No. 6 -1 that match the boundaries of the proposed Pinetree Pond plat. Pam Brausen asked about the modification proposed this evening as well as how much in Tax Increment Financing is being allocated toward the Pinetree Pond project. The City Administrator noted that the TIF District was established in 2009 and TIF District No. 6 -1 included the boundaries of 2966 Arcade Street. The modification proposed would incorporate 2945 and 2959 LaBore Road in TIP District No. 6 -1. The Administrator reported that the TIF funding plan has not yet been finalized with the developer. However, the agreement concept is that the developer will pay $100,000 per lot (15 lots for $1.5 million) including some special assessments for infrastructure improvements. Infrastructure costs are not yet known as bids have not yet been received. The Administrator reported that there will be costs beyond the $100,000 per lot for land acquisition, infrastructure, landscaping, demolition of structures, and interest carrying costs. The Administrator stated that the City would anticipate recovering these costs through TIF in approximately 10 years. He noted that the City estimated home values conservatively at $400,000 while the developer is proposing $500,000 homes. The Administrator also noted that the developer has funded the vast majority of costs, to date, those being half the cost of the acquisition of 2966 Arcade Street and all the costs for acquiring 2945 and 2959 LaBore Road, plus development costs. Pam Brausen noted the comment at a previous meeting that infrastructure improvements would be approximately $1.7 million. The City Engineer noted that bids have not yet been received for these improvements, and noted that his estimate is $800,000. The Administrator indicated that TIF will not pay all the costs of the Pinetree Pond development. Mark Ruff estimated the TIF assistance at less than $500,000. There was no one else from the general public present wishing to comment on this matter. Upon motion by McGraw, seconded by Keis, the public hearing was closed. 3