07/08/1991 Council Minutes (2) - Laserfiche WebLink

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1 1 COUNCIL MEETING JULY 8, 1991 Council Member Bohjanen moved to table action on the request to rezone the south 20 acres owned by Mr. Birch until a reply has been received from the Metropolitan Council. Council Member Kuether seconded the motion. Motion carried unanimously. PUBLIC HEARING, LAKE AMELIA ESTATES TAX INCREMENT FINANCING (TIF) PLAN Mayor Bisel opened the public hearing at 8:40 P.M. Mr. Ron Batty explained that this TIF plan is a "Soils Condition Tax Increment Financing Plan ". The Plan calls for a "pay -as- you -go" plan that will reimburse the developer up to $300,000.00 for soils correction of the old Hansen gravel pit. It will also provide the City $15,000.00 in administrative fees, will make no money available for utility "write- downs" or any other developer costs and provides for a 12 year pay back period. Mr. Batty also noted that this is a new TIF District and all TIF collection from this district must remain in this district. In addition all TIF money collected in this district must be used for soils correction. If there is any TIF money remaining after the soils correction is completed, the money must be returned to the district. Mr. Batty explained that the Council should rezone the property and approve the preliminary plat prior to taking action on the TIF plan. He noted that since the City has an EDA, the Council will have to meet as the EDA and then meet as the City Council to approve the project. Mr. Art Hawkins, 6102 Centerville Road said he did not know much about TIF but thought that unlimited funds are not available. Mr. Batty explained that the only available funds will come from the project itself and not from any other area. Mr. Batty explained that there are five different types of TIF districts and they all are designed to do a different job. This particular district is a "soils correction" district. Mr. Hawkins noted that the cost of soils correction would depend on how much development is planned. Mr. Boxrud said yes, if only two houses were to be constructed on the 20 acre site, only two house pads would need to be constructed. Kirk Hawkinson, 1909 Birch Street asked who determines if this development qualifies for this type of TIF. Mr. Batty explained that ultimately the Council answers all the questions determining the qualification. Mr. Boxrud has reviewed the information presented by the engineer for the developer and Mr. Boxrud agrees that 85% of the site needs correction. Mark Winiecki, 6387 - 20th Avenue felt that the engineers should look at the entire site of 48 acres. Certainly not 80% of the PAGE 9 261