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CITY COUNCIL WORK SESSION July 25, 2016 DRAFT 2 convenience of having one large district to include all as is being requested here. Mr. 44 Grochala identified districts that were already place. 45 46 Mr. Grochala clarified what is identified within the tax increment plan, including the 47 budget and spending plan and the amount of increment proposed through a five and a half 48 year period of a maximum nine year term. It would be about eighty percent collected 49 each year going to the developer; the remainder is reserved for pooling and 50 administration. He noted the inclusion of those terms within the contract and the plan. 51 52 Julie Eddington, Kennedy and Graven and counsel on this project, reviewed the 53 development district plan proposed. The contract provides the developer with an amount 54 and as soon as the city pays that off, there is no longer any city obligation and the district 55 must be decertified by the end of that year. 56 57 Council Member Kusterman asked about the practice of establishing the entire city as a 58 tax increment district and the impact. Ms. Eddington explained that the entire city is the 59 development district while the tax increment district is just the project area. 60 61 The mayor suggested that this can be a sensitive topic within the city so he wonders why 62 the recommendation is for longer than needed. Ms. Eddington explained the 63 recommendation, noting that the value of the property the tax increment grows as the 64 project is built and the valuation rises. 65 66 Council Member Rafferty suggested that he’d prefer more discussion on tax increment 67 financing and the project and wonders if postponement is appropriate. The mayor noted 68 that a public hearing is scheduled but past opening that, the council should be 69 comfortable moving ahead. Mr. Grochala suggested that the rezoning and preliminary 70 plat (Items 6Aii and 6Aiii) could still move forward. Further the Springsted consultant 71 on the project will be giving a full presentation on tax increment financing. 72 73 The meeting was adjourned at 6:25 p.m. 74 75 These minutes were considered, corrected and approved at the regular Council meeting held on 76 August 8, 2016. 77 78 79 80 81 Julianne Bartell, City Clerk Jeff Reinert, Mayor 82 83