10/07/1998 Council Minutes - Laserfiche WebLink

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• • CITY COUNCIL WORK SESSION OCTOBER 7,1998 Bob Bening asked if copies of the draft Plan are available to the public. Brian stated 10 copies have been prepared but are disappearing fast. He indicated any citizen who would like to see the plan should contact Mary Kay. In addition, there is a copy in the Citizens Library. LGA/HACA OPTIONS, BRIAN WESSEL Dave stated the HACA penalty in the amount of $155,600 can be paid through the Area and Unit Fund. The Black Duck Lift Station was budgeted for the amount of $248,000 and was to be paid from this Fund. Since the project has changed and not all of these dollars will be spent on the project, he recommended the penalty be paid out of the Area and Unit Fund which has an excess of $5 million. Kim noted they need to be certain the funds will not be needed for a new lift station. Dave indicated plans for the lift station have changed substantially. Mark Ruff, Ehlers & Associates, provided a written Tax Increment Financing Overview. He stated that no decisions have to be made regarding mitigation this year. He indicated that legislation is the City's best option for reducing or eliminating future penalties for the short term. Hiring a special lobbyist is also an option. Kim stated she is not willing to let these issues hang until 1999. She wanted dates, targets, and plans. Mark recommended a decision be made in June, 1999. At that time the City would know what the Legislature is going to do. Kim said she does not believe a paid lobbyist will work. Mark recommended making sure the Lino Lakes representatives to the legislature are aware of the problem and to make sure the League of Cities can help. Kim said that item #1 regarding mitigation in Marks written overview, is the first step and needs to be acted on at the October 26, 1998, meeting. Renegotiating development agreements should be an ongoing process. Item #2 under mitigation needs to be reviewed on June 1, 1998. Kim stated she will work with Dave and do whatever is necessary regarding legislation. Kim stated she would like a better understanding of why the City chose to pay the penalty as opposed to the contribution. Mark stated that because the penalty could not be projected, some cities chose to pay the penalty. The penalty amount could have decreased. Kim stated the Council must put together a policy to review TIF Districts. The City must plan and provide funding for unforeseen costs attributed to the TIF Districts. She wanted a written policy for the City to deal with, review, and analyze TIF Districts. Chris noted he was pleased that staff found a solution so this was not passed on to the tax payers. He indicated he expects the same in the future. Andy asked if the City has an insurance policy for mistakes. Kim stated she believes this was not a mistake but a judgment call. 111 Kim stated a policy needs to be in place before another TIF District comes before Council.