08-24-1988 Council Agenda - Laserfiche WebLink

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MINUTES Planning Commission August 11, 1988 The Planner pointed out that Desoto will not be available as access to the industrial property, and therefore, the industrial property along Desoto cannot be assessed for the street improvement. Costa asked if the residential property owner on the other side of DeSoto was in favor of the improvement of DeSoto. The Planner was not sure, but indicated that if that property owner is opposed to the road at this time, it probably will not be built. Costa asked why Larry Lee was eligible for TIF assistance. The Planner again pointed out the cost of utilities to the Larry Lee property. The Planner reported that a large amount of the utility extension cannot be assessed, and TIF would be used to pay for this extension. The Planner also reported that Mr. Lee is required to submit site performas on the development showing the cost of the project with and without TIF assistance. These performas show that the project is not feasible without TIF because of site acquisition costs and utility costs. The Planner went on to explain how TIF works and how the taxes generated by the new building are captured to pay the cost of the TIF bonds. The Planner reported that the TIF bond issue would probably be issued for a period of 10 years. Costa pointed out that the other taxpayers in the City will not benefit from the Larry Lee project for 10 years, or until the TIF bonds are paid off. The Planner agreed, but pointed out that without TIF the project would not be developed and the City will continue to get the taxes on only raw land. Also, the development may attract other high - quality development to the area that may not need TIF assistance, and the City will realize increased tax benefits in this manner. Pope pointed out that the City has to consider if this is the type of project it wants. Pope agreed that the City also must weigh taxes on just the raw land versus taxes the City will eventually receive on the developed land. The Planner pointed out that with TIF the City will still receive the taxes it had been receiving on the raw land, and the County also has an economic adjustment factor that increases the value of the raw land and, thus the taxes on the raw land that the City receives. Schweizer questioned the Policy Statement that indicates a maximum term for TIF bonds of 12 years. The Planner explained the Goals and Objectives that the City established and pointed out that in economic development projects State Law limits bond terms to 10 years. However, in redevelopment projects bond terms can be up to 20 years. The City has set a policy of limiting these bonds to 12 years. Page 7