09/23/1998 Council Minutes - Laserfiche WebLink

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• • CITY COUNCIL WORK SESSION SEPTEMBER 23, 1998 funds if the City can loosely demonstrate the City has absorbed costs for administrative costs. It was the consensus of Council not to increase the tax capacity rate. Auditor Services - Dave asked if the Council would like him to continue with RFP's for auditing services. He stated negotiations with the current auditor are not going well. It was the consensus of Council for the City to initiate a letter of termination to Tautges. Dave indicated he will consult with the experts regarding the date of termination. LAKES SHOPPING CENTER PROPOSAL, BRIAN WESSEL Brian went over the Lakes Shopping Center proposal. He stated staff will be asking for approval of the preparation of a Redevelopment Project Plan at the EDA meeting Monday, September 28, 1998. If approved, staff will be asking for Council approval for a public hearing regarding the project on October 26, 1998. Phase I will generate $70,000 in net tax revenues over the next ten years. The issue is whether or not Council feels it is a good idea to kick start the process with an incentive program. The incentive program will not begin until the McDonalds store and Amoco store are in place. The project will be 5-10 years away without an incentive program. If the City is in partnership with the developer the City is in a position to demand control over land uses and specific architectural standards. Jerry stated that if the City enters into a partnership with the developer if could be classified as a local effort TIF project which provides maximum flexibility of the funds. The project would have to be budgeted every year. Levy limitations could have a negative impact. Chris noted the City can not raise the tax rate for taxpayers and then give handouts for development. John stated that if the project is approved, it is an argument to the terms of the HACA penalty. A case could be made for the off set of some penalties based on effect that the Shopping Center proposal benefits the School District at the expense of the City. Brian indicated the developer has not stated they will not proceed without the incentive from the City. There is always a negotiation on terms. The developer may wait and let the project develop naturally. The infrastructure will be needed anyway. This item will be on the regular City Council agenda Monday, September 28, 1998. DISCUSSION OF CIRCLE PINES GAS FRANCHISE, JIM KEINATH, CIRCLE PINES CITY ADMINISTRATOR Mr. Jim Keinath stated the City receives a $40,000 annual franchise fee from the Circle Pines Gas Utility. Circle Pines Utilities is the only company that is paying a franchise fee. Mr. Vern Reinert stated he has conducted a year long study regarding this issue. The City has copies of all documents. He stated Minnegasco and NSP were willing to look at