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COUNCIL MINUTES SEPTEMBER 10, 2001 Consider Resolution No. 01-106, Approving a Tax Abatement to Target and Kohl's (Lino Lakes Marketplace Request for Tax Abatement) 3/5 Vote Required, Al Rolek — Finance Director Rolek advised Resolution No. 01-106 recognizes that the Marketplace development meets the goals and objectives outlined by the City in its tax abatement criteria and sets forth the terms of the abatement. He reviewed the terms of the abatement and advised it is staff's recommendation that approval of the abatement be contingent upon final approval of the project by the City Council. Council member Carlson asked if the amount of $519,000 in five (5) years is because the waived SAC/WAC fees are not included. Finance Director Rolek stated the SAC/WAC fees are not included in the business subsidy either. Only the surface water management fees are being waived. Council Member Carlson clarified that the subsidy amount is $519,000 plus waived fees. Council Member Reinert stated he received an information letter today entitled "Are the deals at Target this good?". He read the information sheet and responded to the misconceptions that are in the community regarding tax abatement. He noted that the 77th Street issues d• oncern him. He also responded to the comments that were made by residents during the pu s lf` g. He noted the abatement may be over before the five -(5) year period. Council Member Reinert continued stating he has lived w h ly ` ino Lakes on and off since 1975. He stated he loves the City and it will never be ag ose�because the City can only build on one of every five (5) acres. The Compre e e Pl`: , . lows for slow growth and low density. The community is a bedroom communi ple come here to live and not work. The City has high taxes because of that. Busies of •e built all over Lino Lakes because there are minimal areas for commercial develo � 1. • has been designated as commercial for twenty years. The City should build soms ha t sows will succeed. Taxes will not go up because of this development. City servic • tinu and paid for by the tax dollars already being collected on that parcel. After five ( th 'ty will start collecting taxes. He stated he does not know if taxes will go down at at por That will be up to the future Council. There are also other pads that will develop because a •ro; > "t. Those pads will also pay taxes and they will be paid immediately. There wi • •e renewed interest in the YMCA. There will be senior housing and a string of small retail she - ' . The total cost is $519,000 + $105,000 for the surface area management fund. He stated the City does have a very conservative financial advisory that has indicated that fund is in good shape. He reiterated that fees that will come into the City because of this project, which is approximately $510,000, noting the fees will not come without costs. The City has been ordered to purchase a two -(2) acre parcel for $370,000. The developer will purchase that property back from the City. That adds up to approximately $880,00 going to the City, which is a financial benefit. Council Member Reinert referred to the term "corporate welfare" and stated there are two (2) options: TIF or abatement. Every Council Member on this Council has voted for TIF and sometimes the term was up to ten years. He stated most of the comments he has received would indicate that residents want Target, but not the abatement. Citizens have wanted tax relief and diversifying the tax base is a way to do that. This development would be an asset to the community. He stated he is in full support of the project and was always trying to get to a five -(5) year term for the abatement. Every single 12