06-24-2019 Council Special Work Session Minutes

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CITY COUNCIL WORK SESSION June 24, 2019 APPROVED 45 Council Member Stoesz asked about the timing for certifying the base value and Ms. 46 Huot explained that the value will be based on a date and assessed value. 47 48 Mayor Reinert commented that the amount of tax increment has been reduced from an 49 original proposal of $10.5 million; adding the townhomes made a reduction possible. He 50 noted concern about the valuation placed on elements besides the townhomes; that seems 51 low and future increases in value will not be recognized. Ms. Huot said the final amount 52 of that valuation is not clear yet and if the valuation is higher, that would provide for 53 additional reduction in tax increment. The mayor remarked that the calendar looks 54 accurate as far as what can be done. He asked if there will be another valuation from the 55 county before the City commits on the plan. Ms. Huot said that the goal is to have the 56 best estimate prior to the public hearing. Mayor Reinert also mentioned the council's 57 request for some type of audit on construction costs. 58 59 Julie Eddington reviewed the contract for private development. She explained the uses 60 of the skilled care building and the percentages of use that are allowed. She also 61 explained how reductions in tax increment could be accomplished under the contract 62 language, including through reduced construction costs or sale of parcels sold at a certain 63 profit level. Basically all of the things that the city wants is included in the contract. The 64 contract is still under review by the developer and they may have some minor continents. 65 She added, regarding construction costs, that the City can hire a review of costs to make 66 sure they are in line with industry standards or add language to the contract for reviews 67 during construction. 68 69 Mayor Reinert asked, what if the permits for the skilled nursing aren't approved and that 70 doesn't proceed. Ms. Huot explained that the estimated value (cost) will still be 71 reviewed. 72 73 Mayor Reinert expressed support for the project occurring in the City. But he wants due 74 diligence on the plan. His goal for the tax increment plan has been six years but he isn't 75 sure that's possible. 76 77 Council Member Stoesz remarked that the contract contains the term "unavoidable 78 delays" at least fifteen times. Does staff see that as a possibility? Ms. Eddington said 79 she has never seen that happen; there are other delays that could be expected. 80 81 Council Member Stoesz remarked that notifying the public on this matter is a challenge 82 because it's so complex. How can the City inform residents in a way that is 83 understandable? Ms. Huot said the official notice includes language directing people to 84 contact staff with questions. Mayor Reinert asked staff to put together some bullet points 85 that explain clearly the benefits to the city. 86 87 The meeting was adjourned at 7:40 p.m. 88 2