HomeMy WebLinkAbout08/12/1985 Council MinutesCOUNCIL WORK SESSION
August 12, 1985
A Special Council work session of the Lino Lakes City Council was
called to order by Mayor Benson at 6:16 P.M., August, 12, 1985.
Council members present: Bohjanen, Reinert, Marier, Kulaszewicz.
City Accountant, Joe Huss; Administrator, Randy Schumacher and
Clerk - Treasurer, Marilyn Anderson were also present.
Mr. Schumacher explained the purpose of the Work Session was to meet
with Mr. Dan Wilson of Wilson Management Services. Mr. Wilson will
give further information, illustrations and examples of Tax Increment
Financing (TIF). He will also answer questions from the City Council
Mr. Wilson has prepared a Tax Increment Financing Economic Develop-
ment Proposal for Council consideration. This proposal outlines the
scope of services he proposed to perform for a fee of $3,500.00.
This proposal will be considered at the regular Council meeting this
evening. This proposal involves taking the necessary time to study
TIF and walk through steps involved in preparing a TIF District and
Plan.
Some topics discussed by Mr. Wilson;
1) Definition of tax increment financing - A means of financing a
public expenditure.
2) Should the Council be involved in the development of the commun-
ity. The Council will have to decide.
3) Problems - "Developers are making too much money ". Mr. Wilson
suggested do not get involved with losers. Know your developer.
4) Comment - "We are giving this away ". The Council should ask what
will the City get in return. For instance, create tax base, create
jobs.
5) Consider that the development potential for the community is an
asset and must be developed or used.
6) Comment - "Tax increment financing is on its way out ". This is
said every year. However alternative financing methods are few-
er and fewer. Industrial Revenue Bonds are being more restricted
and the available money is becoming less and less. (TIF does
not build buildings).
7) Positive side of TIF - local determination, no grants or funds
to apply for, City has flexibility to tailor a project to meet
individual needs.
8) Financing would be by issuing General Obligation Bonds, however
these bonds do not interfer with the levy ability of the comm-
unity.
9) Mr. Wilson explained an example.
Mayor Benson thanked Mr. Wilson for coming and explained his proposal
1
1
1
1
COUNCIL WORK SESSION
August 12, 1985
Page Two
was on the Council agenda for later this evening. Mr. Wilson said
the next step would be to schedule another work session to put together
a development plan for the City and a second session to determine some
development policies and yet a third session to put together a specific
project.
Mayor Benson suggested that the Economic Development Committee and the
Planning and Zoning Board should sit in on some of these meetings.
The work session adjourned at 7:15 P.M.
These minutes were considered, corrected and approved at a regular Council
meeting on August 26, 1985.
Marilyn G.'Anderson, City Clerk
y=a - ` t>
-Benjamin ' Benson; Mayor
0-63