08/08/2005 Council Minutes - Laserfiche WebLink

Home Search

COUNCIL MINUTES AUGUST 8, 2005 APPROVED 49 C. CONSIDERATION OF APPROVAL OF •50 BLOCK PARTY APPLICATION FOR RED 51 CLOVER LANE Removed 52 53 D. CONSIDERATION OF APPROVAL OF 54 BLOCK PARTY APPLICATION FOR GOLDEN 55 ROD CIRCLE Removed 56 57 E. CONSIDERATION OF MINUTES OF 58 JULY 6, 2005 COUNCIL WORK SESSION Approved 59 60 FINANCE DEPARTMENT REPORT, AL ROLEK 61 62 A. Consideration of Resolution No. 05-114, Adopting Private Activity Tax -Exempt 63 Financing Guidelines 64 65 Finance Director Rolek presented the Staff report, indicating Staff recommends approval. 66 67 Councilmember Reinert asked if the tax-exempt financing guidelines criteria are used in other cities 68 and whether or not it has been tested. He also asked about exposure. Finance Director Rolek stated 69 the guidelines are taken from models other cities are using. He noted there is exposure control and it 70 is at the discretion of the City. 71 72 Councilmember Stoltz asked if it is inclusive. He also asked if the City has used these bonds before. • 73 Finance Director Rolek stated the guidelines could pertain to other types, but there are some 74 limitations. He noted the bonds have been used in two prior situations. 75 76 Councilmember Carlson asked if the application for tax-exempt financing includes housing. She also 77 asked whether 501(c)(3) organizations are tax-exempt organizations and whether or not only tax - 78 exempt organizations may apply. Finance Director Rolek stated housing is included. 79 80 Terri Heaton, Springsted Incorporated, stated the policy would allow tax exempt financing for 81 manufacturing and health care facilities even if they are not 501(c)(3). 82 83 Councilmember Carlson stated her concerns that there are no goals an organization could be held to 84 after the City provides this financing. Finance Director Rolek stated they could look at developing 85 goals. He noted the intent was to put guidelines in place with the YMCA coming in. 86 87 Mayor Bergeson stated these guidelines do not give applicants any rights and the City would have to 88 decide on any project. Finance Director Rolek stated this is true; it is not a right of financing. He 89 noted Council may give preliminary approval, but can withdraw it if it does not benefit the City. 90 Community Development Director Grochala noted Council has previously adopted a business 91 subsidy policy and the guidelines are only a tool to facilitate development. 92 93 Councilmember Carlson requested that a reference to the business subsidy policy be added to the 94 guidelines. Finance Director Rolek stated it could be added per Council request. 95 •