01-06-1997 WS - Laserfiche WebLink

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understanding what these two approaches mean. The first one means the City takes existing funds and doesn't get them back for 15 years. The second means keeping our funds, but not getting the new tax proceeds back, aside from 10%, for the next 15 years. While these practices are fairly common for TIF deals, the real difficulty comes in what the City of Mounds View has done in the past to get these deals done compared to this one. Normally, the City has done only nine year deals. Everest claims market forces are such that to be competitive, that won't work for them. Other risk factors have to be weighed in as well. I am afraid their is no real right or wrong simply answer to give you, and depending on the Council's philosophical approach to economic development, we will need some time discussing this as well. You may note the strained tenor of the correspondence as well. Everest's tactics have tended to confuse matters, but as I wrote above, the real issue is how far is the Council willing to go to get this development done. For new Council members, you may want to give me a call to review how this has worked in the past if you are unfamiliar with tax increment financing. 6. Resolution Initiating Process for Consideration of New TIF District: This resolution was tabled at the last meeting. The intent was to state the City is considering a resolution to create a TIF district encompassing the Bel Rae site. The prior Council tabled it on a 4 to 1 vote. Since it was tabled, it will have to come up again sometime, so I put it on this agenda. 7. Overview of Housing Replacement Program: Community Development Director Pam Sheldon will be present for this item. 8. Non-Union Annual Compensation Adjustment: The City typically makes annual wage • adjustments in January. Budgeted for 1997 for all employees is a 3% increase, which is made to the salary schedule. Council action is needed to ratify this. The police union contract has already been agreed to and contains a 3% increase. 9. Pending Administrative Items: There are several other items being worked on that you may know about such as Quad Rink project in Blaine, the airport and golf course items and other listed in my brief memo in your packet. We can discuss these as you feel. That's it for now. Feel free to call if you have questions on any of the agenda matters. Have a good weekend and see you on Monday. S