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CITY COUNCIL WORK SESSION July 25, 2016 <br />APPROVED <br />44 convenience of having one large district to include all as is being requested here. Mr.. <br />45 Grochala identified districts that were already place. <br />46 <br />47 Mr. Grochala clarified what is identified within the tax increment plan, including the <br />48 budget and spending plan and the amount of increment proposed through a five and a half <br />49 year period of a maximum nine year term. It would be about eighty percent collected <br />50 each year going to the developer; the remainder is reserved for pooling and <br />51 administration. He noted the inclusion of those terms within the contract and the plan. <br />52 <br />53 Julie Eddington, Kennedy and Graven and counsel on this project, reviewed the <br />54 development district plan proposed. The contract provides the developer with an amount <br />55 and as soon as the city pays that off, there is no longer any city obligation and the district <br />56 must be decertified by the end of that year. <br />57 <br />58 Council Member Kusterman asked about the practice of establishing the entire city as a <br />59 tax increment district and the impact. Ms. Eddington explained that the entire city is the <br />60 development district while the tax increment district is just the project area. <br />61 <br />62 The mayor suggested that this can be a sensitive topic within the city so he wonders why <br />63 the recommendation is for longer than needed. Ms. Eddington explained the <br />64 recommendation, noting that the value of the property the tax increment grows as the <br />65 project is built and the valuation rises. <br />66 <br />67 <br />68 <br />69 <br />70 <br />71 <br />72 <br />73 <br />74 <br />75 <br />76 <br />77 <br />78 <br />Council Member Rafferty suggested that he'd prefer more discussion on tax increment <br />financing and the project and wonders if postponement is appropriate. The mayor noted <br />that a public hearing is scheduled but past opening that, the council should be <br />comfortable moving ahead. Mr. Grochala suggested that the rezoning and preliminary <br />plat (Items 6Aii and 6Aiii) could still move forward. Further the Springsted consultant <br />on the project will be giving a full presentation on tax increment financing. <br />The meeting was adjourned at 6:25 p.m. <br />These minutes were considered, corrected and approved at the regular Council meeting held on <br />August 8, 2016. <br />79 <br />80 <br />1 <br />82 a is e Bartell, City lerk <br />83 <br />2 <br />