02-28-1990 Council Agenda - Laserfiche WebLink

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MINUTES PLANNING COMMISSION February 8, 1990 Costa asked about the County's position on TIF. The Administrator replied that the County is addressing the topic with municipalities, and there is a meeting scheduled tomorrow morning to discuss the matter with Representative Valento. The Administrator stated that cities, counties, school districts and the State all acknowledge that the existing TIF program needs modification. Cities are competing for development, and controls are needed to regulate this aspect. However, the value of TIF cannot be ignored. The Administrator reported that cities are recommending with County staff to the County Board that the County adopt an economic development plan to guide TIF so that it will not be misused or abused. The County does acknowledge that TIF is a tool that is important to development. The Commission discussed the amount of TIF assistance that the Country Drive project needs, and DeLonais pointed out that in the long -range the development will provide taxes that will override the amount of assistance provided. Costa pointed out the possibility that the buildings will remain empty. The Planner pointed out that taxes will be levied against the buildings, and the developer will be obligated to pay those taxes. If the taxes are not paid for a period of three years, the buildings will go tax delinquent. Costa again asked why TIF is being given to this development. The Administrator replied that the price of the land, based on the market today, will not allow the development to occur in a competitive manner. Costa pointed out that there is the opportunity for landowners to increase the price of their property to an uncompetitive level. TIF is then offered to a developer to bring the property costs down to a competitive level. The Planner replied that the property in question was appraised and the price found to be in the reasonable range. Page 13