08-09-1999 EDA - Laserfiche WebLink

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Council. He stated they could also provide progress reports regarding the discussion and the issues the EDC is addressing, so the Council may offer input as those issue moves forward. City Administrator Whiting stated one of the parallel efforts that would take place simultaneously would be the development of the Economic Development Budget for 1999, which is financed out of TIF for housing or Economic Development programs. He stated the budget is a policy statement of the City's needs and issues, and should not be forgotten along with the work discussed that evening. Mr. Carroll stated he thought would assist with the budget discussion, as it is useful to discuss the specifics. President Coughlin stated the previous item discussed at the EDA meeting was a direct result of some of the funding that has come available to the City. Economic Development Coordinator Carroll agreed. He stated this was a good example of how they would begin with a property that is worth $60,000, and have a$180,000 property when the project is completed. He stated this triples the value, and improves the appearance of the neighborhood. President Coughlin stated one of his personal goals would be to greatly increase the funding to Housing Redevelopment, with approximately 80 percent of the tax base in residential. He stated this was a fairly old residential group of housing in the City, and he sees it as essential, that they do whatever they can to redevelop, as this is the core and cornerstone of their tax base, which has been somewhat neglected in recent years. Vice President Stigney clarified that approximately 23 percent of the City's tax capacity is presently sitting in TIF Districts, which means this money does not go directly to the taxpayers to offset their taxes. He stated it goes for TIF projects and development. He stated they were certainly needed, but there has to be a balance. He stated the Council had the opportunity to pull two parcels off, and reduce the tax rate for the residents, and the Council elected not to do that. He stated he hoped in the future, when reviewing this, and the entire comprehensive package, they would attempt to reduce taxes to the residents, rather than"TIF and build." Commissioner Quick inquired, when a TIF District is set up, the district pays the taxes as of the date of conception of the district, so it is only the increase that is actually considered increment. Mr. Carroll stated this was essentially correct. Commissioner Quick stated therefore, it isn't all the property, it is just the increase, the actual gain or improvement to the tax base that pays into the pool. Mr. Carroll stated this was correct. Commissioner Quick stated his point was that this is not a"black hole"where the tax base disappears from the coffers. He stated what is there, is there, and the increase in the property value is what they are referring to. Vice President Stigney stated he took a different view, in that the Council had the opportunity to pull two parcels off and could have gained a full increment for the tax base, rather than putting it into a TIF District. 6C:\ADM IN\MINUTES\EDA\8-9-99.EDA