01/08/2004 EDAC Minutes - Laserfiche WebLink

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the district, much less would be generated. The Hartford Group is only asking for approval of the senior housing with 50,000 square feet of commercial, which is not in the TIF district. So at this point, there is no TIF to provide. They are being very selective about townhome developers, and are hoping to come in this spring with a townhome project and a condo site plan. Ms. Divine stated that preliminary discussions for use of TIF will be pay-as-you-go for the infrastructure costs. The TIF plan lists the types of uses for TIF, including site acquisition, infrastructure, site improvements. Mr. Milbauer questioned Hartford’s capability to move ahead without the market feasibility study. Ms. Divine stated this is an important issue but they are committed to the senior housing and are awaiting the market study on the commercial. They intend to build Phase 1 this summer. The YMCA has also indicated it could be prepared to start this year. Mr. Juni said the Y still has $2 ½ million to raise, but they have brought on someone to concentrate on fundraising. Mr. Juni believes within a few months there will be a clear picture whether the Y can raise the money. The redesign of the site has helped the Y. The Y has not submitted plans for approvals, so they are at best months out before construction. Mr. Gorowsky stated the essence of the issue is the difference between the current zero capacity and full capacity. Other cities are not giving the maximum. People want to be aware and comfortable with what the city ultimately does and how that will affect the economics of it. This group could provide some indication, and market information about what surrounding communities are doing. Members also suggested that the press be educated about TIF. Ms. Hansmann stated the budget is skewed to the maximum buildout, which may not happen, and people don’t understand it. Ms. Divine stated that districts in the city have averaged five years of increment. The larger the project, the larger the subsidy, but the more taxes it generates. Mr. Milbauer suggested an update to the council regarding the TIF Districts. Ms. Divine stated in 2003 the city decertified three districts and the council received information regarding the amount now on the tax rolls. Members questioned if the original capacity of those districts could be shown so that the council could see that only a portion of the capacity was used. Ms. Divine explained earlier districts were done differently. The district budget was set at the amount of subsidy the first project received, then the district was modified each time a project was added. In the last few districts, the budget has been set at the estimate of full buildout of the district. Those could be used to demonstrate that the full budget is not spent. Mr. Gorowsky said an historical perspective, and some indication to the council in terms of where we might go will be helpful. For example, if the capacity of past TIF districts has been 100% of the potential buildout, but the city has awarded less, that would give some comfort. Then to know what comparable cities do, such as Blaine and Forest Lake, would give perspective. Perhaps EDAC should provide some input. Mr. Juni said he saw confusion and misunderstanding on this issue. Ms. Divine stated there is no doubt TIF 2