Laserfiche WebLink
MINUTES APPROVED: 9-6-94 <br />LAKE ELMO CITY COUNCIL MINUTES <br />AUGUST 15, 1994 <br />Mayor John called the special workshop to discuss Finance Options for 1-94 <br />Sanitary Sewer with Kathy Aho and Paul Donna, Springsted Financial to order at <br />7:10 p.m. in the council chambers. PRESENT: Mottaz, John, Conlin, Johnston, <br />Johnson, Finance Director Banister and Administrator Kueffner. <br />Kathy Aho and Paul Donna, Springsted Financial, provided copies of Tax <br />Increment Financing (TIF) in Minnesota- Concepts and Mechanics. The <br />Council's discussion was primarily based on this material. <br />When asked what it would cost to set up a TIF in the city, Kathy Aho responded <br />that just for the Tax Increment Plan, absent of any negotiations with developer or <br />drafting some kind of development agreement, the cost would be up to $5,000. <br />Kathy Aho explained you need to have something other than a public <br />improvement to keep it as a Tax Increment District. Someone is going to have to <br />come in and build something there, and the city has to ask, what is it that they <br />have to build, what kind of value do they have to put on there in order for the city <br />to afford the $2 million. <br />Prior to designating the district, Administrator Kueffner asked if the city could <br />bond and put in some improvements. The increase value of property that's <br />going to benefit from this could pay off at least the interest on the loan. Aho felt <br />they would have to work with the numbers on this, but was skeptical to do this in <br />absence of any discussions with a developer going in there. <br />Since establishing a project area is a fairly low cost, Johnson asked if this is <br />enough for a city to show a developer that the city is serious about developing in <br />the project area. Aho thought it would start building the base case and they <br />would suspect you are offering TIF as a method of assistance. <br />Other options beside TIF. <br />Infrastructure for water, sewer, roads, storm sewers, etc, are financed under <br />Statute 429, which requires the city to special assess up to 20 percent to the <br />benefiting properties. <br />Referendum - ask the people if they want to support $2 million worth of <br />improvements. <br />Free money; such as grants <br />