07/12/2001 EDAC Minutes - Laserfiche WebLink

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4 RYAN/TARGET/KOHLS ABATEMENT Ms. Divine stated that the request for participation from Forest Lake School District and Anoka County had been denied by both entities. Mr. Chase said EDAC should give some consideration regarding the payback period of the abatement request. Ms. Divine said the tax reform changes are dramatic and pushes the terms for payback out a lot longer. However, TIF and abatement are still viable tools, and cities still have the charge of economic development. Mr. Gorowsky said the tax savings should offset less abatement dollars. Mr. Rolek said that after this year, cities will be playing on a level playing field. Mr. Wessel said Ryan’s plan is to sell out their part and move on. But with industrial projects there is an option of giving them less or extending the length of payback. Mr. Rolek explained the maximum that can be abated is 5% of the general levy, but the city’s capacity will rise over time. Ms. Hansmann said the Ryan project will use a large portion of what’s available and will limit other projects, including those in the Village. Mr. Rolek said each year the city makes a payment on this project, it is freeing up capacity for future use. Ms. Carlson said the city has to pay for services to the new projects. Mr. Milbauer said bonds could be issued. Mr. Rolek said pay-as-you-go lowers the risk to the city. Ms. Divine said the TIF projects out are in the range of 4-5 years payback. Mr. Wessel asked for recommendation regarding making the severed piece available as an incentive. Ms. Schwartz moved to approve using the severed piece as a tool in the negotiations in the Ryan/Target/Kohl’s subsidy request. Mr. Gorowsky seconded the motion. Motion passed unanimously. Ms. Carlson said the city can control the subsidy issue, but has no control over the access. The county does not want to allow the second access. The council approved a resolution supporting the access and sent it to the county. VILLAGE DEVELOPMENT- LETTER OF INTENT Ms. Divine said a letter that outlined a schedule and city and developer responsibility was approved by the city council. This will be the basis to develop a more binding agreement. Mr. Juni said he appreciated getting the documents in advance to have the opportunity to read them over. Mr. Juni moved to adjourn. Mr. Gorowsky seconded the motion. Meeting adjourned.