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MINUTES <br />CITY COUNCIL <br />APRIL 9, 2014 <br />The Administrator reported that he reviewed the 2013 property tax <br />statement for this property, and the City's share of taxes was $3,381. <br />Gagne noted that that is $3.30 per person in Little Canada. The <br />Administrator indicated when the City assembles a redevelopment area, <br />the resulting redevelopment will generate substantially more in taxes for <br />the City. There was some discussion relative to other redevelopment areas <br />and the fact that some buildings have high vacancies. The Administrator <br />noted that even with vacancies, the buildings are paying property taxes <br />and the areas looked much improved. <br />McGraw reported that the new Public Works -Parks Facility is needed in <br />Little Canada given the condition of the existing facility. McGraw stated <br />that he did not want to spend any more money than is necessary on this <br />project. IIe noted that the Construction Manager and the Architect were <br />hired to provide the City with the best information possible on this project. <br />Keis expressed concern about the possibility that project costs could <br />increase 10% or 15% as a result of the bids received. McGraw suggested <br />that if that were the case, the project would likely be delayed. <br />The Council discussed delaying the project given the upturn in market <br />costs. Blesener felt that costs would continue to increase for next year at a <br />rate of 3% to 6 %. Naughton felt that costs would increase more than that <br />amount. Corbett noted that there is currently interest on the part of <br />contractors in this project. He felt that if the City delayed the project those <br />contractors would become disengaged with the project. <br />Corbett noted that the City's initial project schedule was very aggressive <br />and the initial hope had been to be in the bid market in April. Corbett felt <br />that bidding the project in mid - summer may not be a bad situation, as <br />contractors would then be looking for winter work. Corbett felt delaying <br />the project until next year would see 5% to 10% increases. <br />Keis asked about funding the additional costs. The Administrator <br />suggested that the Water & Sewer Capital Reserve Fund could be used. <br />He indicated that the question is what number is the Council comfortable <br />with. The Administrator also pointed out that even with the increase in <br />project costs, there would be no need to levy taxes to pay for this project, <br />and there would be no increase in the City's tax rate. <br />McGraw asked what is needed to get this project to bid. He also asked <br />what will happen if the bids come in high and the project is delayed. <br />Naughton indicated that a decision needs to be made on cost reduction <br />options so that the Architect can start the drawings. Naughton noted that <br />parts of the project will be able to be bid before the drawings are finished. <br />7 <br />