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COUNCIL WORK SESSION <br />August 12, 1985 <br />A Special Council work session of the Lino Lakes City Council was <br />called to order by Mayor Benson at 6:16 P.M., August, 12, 1985. <br />Council members present: Bohjanen, Reinert, Marier, Kulaszewicz. <br />City Accountant, Joe Huss; Administrator, Randy Schumacher and <br />Clerk - Treasurer, Marilyn Anderson were also present. <br />Mr. Schumacher explained the purpose of the Work Session was to meet <br />with Mr. Dan Wilson of Wilson Management Services. Mr. Wilson will <br />give further information, illustrations and examples of Tax Increment <br />Financing (TIF). He will also answer questions from the City Council <br />Mr. Wilson has prepared a Tax Increment Financing Economic Develop- <br />ment Proposal for Council consideration. This proposal outlines the <br />scope of services he proposed to perform for a fee of $3,500.00. <br />This proposal will be considered at the regular Council meeting this <br />evening. This proposal involves taking the necessary time to study <br />TIF and walk through steps involved in preparing a TIF District and <br />Plan. <br />Some topics discussed by Mr. Wilson; <br />1) Definition of tax increment financing - A means of financing a <br />public expenditure. <br />2) Should the Council be involved in the development of the commun- <br />ity. The Council will have to decide. <br />3) Problems - "Developers are making too much money ". Mr. Wilson <br />suggested do not get involved with losers. Know your developer. <br />4) Comment - "We are giving this away ". The Council should ask what <br />will the City get in return. For instance, create tax base, create <br />jobs. <br />5) Consider that the development potential for the community is an <br />asset and must be developed or used. <br />6) Comment - "Tax increment financing is on its way out ". This is <br />said every year. However alternative financing methods are few- <br />er and fewer. Industrial Revenue Bonds are being more restricted <br />and the available money is becoming less and less. (TIF does <br />not build buildings). <br />7) Positive side of TIF - local determination, no grants or funds <br />to apply for, City has flexibility to tailor a project to meet <br />individual needs. <br />8) Financing would be by issuing General Obligation Bonds, however <br />these bonds do not interfer with the levy ability of the comm- <br />unity. <br />9) Mr. Wilson explained an example. <br />Mayor Benson thanked Mr. Wilson for coming and explained his proposal <br />1 <br />