07-05-94 CCM - Laserfiche WebLink

Home Browse Search

Mayor's Report July 5. 1994 On June 27, I attended a meeting of the Washington County Finance Committee. The function of the committee as stated by Dick Stafford, County Treasurer, is to advise the Washington County Board of Commissioners on finance matters. It makes no decisions, but provides options between which the Commissioners can chose. At the last Council meeting I mentioned that this meeting would take place, and that I would attend to hear deliberations on the proposed funding plans for the Oakdale golf course in Sections 32 & 33.Oakdale proposed to build this golf course using a unique financing process that would include County, City and possibly School District participation. Mr. Craig Waldron, Oakdale City Administrator, outlined the various options available: It could be financed under Tax Increment Financing, in which case the, County would receive no tax income until the TIF expired. Alternatively, a Soils Tax Increment District could be created, in which case the County would again not receive any tax benefit for 12 years. Oakdale proposed that. the City would dedicate 50% of the new taxes emanating from the new homes to be built around the golf course to offset some of the land acquisition costs. In this way, the County could gain 50% of the taxes immediately, and receive the full tax benefit in 12 years. Should the golf course be developed as a taxable entity, they would request all tax income be applied to the retirement of the bonds. Mr. Satfford indicated that it appeared that they "almost had to go along with the proposal, else they end up with nothing for twelve years". He was concerned that anything done creates a precedent. Commissioner Hauser stated that the criteria under which such funding could be supported would have to be developed. It was also necessary to see how it would work in with the associated legislation. I gave my strong objections to the proposal, based on the fact that part of the golf course is in Lake Elmo, and that Oakdale had made no approach to Lake Elmo on the matter. I questioned the worthiness of requesting County support on a recreational project rather than for infrastructure. The same applied to Oakdale's wish to condemn Lake Elmo land. I explained that to condemn land to develop a sewer project, or to expand a school would be more appropriate than for a golf course.