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LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 15, 1987 PAGE 7 they would approach the development of this area. With the reception they received, these owners came back to the other property owners and asked them to talk to Oakdale also. A number of them went to Oakdale and found them receptive to giving consideration to looking at this area and willing to share with them their thoughts if it was in their City. The property owners then came up with a game plan which is to actively pursue the City of Oakdale for specific terms of what they would be willing to do. It was during this process that the Mayor of Oakdale, recognizing the political sensitivity, saw fit to let Lake Elmo know what was going on. As this progressed, they decided that they would take a concensus to determine how much foundation there is in terms of support for consideration of this kind of thing in order to accomplish what they feel they are motivated to do. A property owners meeting was held in July where this overview was presented. A petition was circulated that meets all the standard requirements of the municipal board and the signatures are in. The strong consensus of the property owners there were to seriously consider this. There is no one that is interested in leaving Lake Elmo for the sake of leaving Lake Elmo. The motivations here are purely economic. The economic inducements the City of Oakdale is willing to afford the property owners in this area are very significant. They have a City that is constructed for sewer and water, tax increment financing districts, etc. The accomplishments they have to show for it bear them out. Johnson explained that they were before them to ask the Council, knowing this information, if there is a willingness on the part of the City of Lake Elmo to give serious consideration to getting into the game and competing with what Oakdale is offering. Mayor Christ recapped what Mr. Johnson was stating with "you are asking the City if they are willing to get into a contest with Oakdale as to who will give you the most?" Johnson responded that he is asking whether the City is interested in competing. He added that it would be a lot easier to do it in Lake Elmo and asked the Council to give them some serious consideration. Councilman Dick Johnson asked Mr. Johnson to elaborate on what the City of Oakdale was offering. Johnson explained the approach Oakdale has taken. No document has been written, but it would be similar to the Fleet Farm and Zycad projects. Oakdale would be willing to look at minimal assessments of 200. They are willing to defer the assessment, having the property owner paying interest only for as long as 5 to 7 years; willing to create a tax increment financing district which would provide the property owners within that area the opportunity to potentially pay "zero" for assessments. They would intitially go in and order the improvements, sewer and water, at a less cost than $3.2 million dollars because they have a trunkmain already across the highway. As development comes in, they would establish a development district whereby the total tax changes as a function of property improvements can be utilized to first pay off the assessments of the sewer and water. They are creating a tremendous inducement for those interested in coming in and