Laserfiche WebLink
APPROVED <br /> <br />CITY OF LINO LAKES <br />ECONOMIC DEVELOPMENT <br />ADVISORY COMMITTEE <br />MINUTES <br /> <br />DATE: Thursday, June 3, 2004 <br />MEMBERS <br />PRESENT: H. Juni, T. Vacha, J. Schwartz, H. Karth, J. Helgemoe, S. Rymer <br />MEMBERS <br />ABSENT: D. Gorowsky, F. Chase, K. Hansmann <br />OTHERS <br />PRESENT: M. Divine, G. Heitke <br /> <br />GENERAL/MINUTES <br />Minutes of May 6, 2004 were approved. <br /> <br />TIF WORKSHOP REVIEW <br />Mr. Juni summarized the workshop of the previous night. Members who attended thought <br />it was very informational. Mr. Juni asked the definition of “Greenfield” development. <br />Ms. Divine explained it was development built on virgin land. TIF cannot be used for <br />Greenfield development except for 10-year economic development districts for industrial <br />development. Commercial development can only get TIF if it is a redevelopment site. <br />Tax abatement can be used for commercial development. <br /> <br />Ms. Schwartz stated the main point she got from the workshop was “what is the risk?” <br />The risk is tied to the quality of the asset. Mr. Karth said the highest point of risk was <br />before the project was built. Ms. Divine stated “pay-as-you-go” TIF minimizes the risk. <br />But in redevelopment scenarios, pay-as-you-go makes the project more difficult because <br />the developer needs upfront money for demolition etc. <br /> <br />Mr. Juni said the perception from citizens is that TIF pads the pockets of developers. The <br />council gets pressured, and how can EDAC assist the council to make good decisions <br />when TIF is appropriate and be comfortable with their decisions. His sense is there are <br />some council members that are never comfortable with TIF. Rather than an automatic <br />“no,” how do we get a comfort level with the council. It’s been a frustration of EDAC. <br />Time will tell when we get into the next discussion with council. <br /> <br />Ms. Divine stated the downtown project is a high cost project that is going to require <br />some upfront TIF and bonding, so the discussion of risk versus reward will be necessary. <br />Mr. Karth stated when cities councils understand TIF better, it doesn’t get blown out of <br />proportion and the citizens don’t get so upset. If the council is in turmoil, the citizens get <br />in turmoil. Mr. Juni stated the council needs to be comfortable with its decisions, then the <br />citizens don’t get so alarmed. <br /> <br /> 1