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City Council Regular.Meeting Minutes 06 December 8, 2003 Page 6 1 the Fire Department in a commercial area rather than in a residential area. He stated he wanted 2 to hear the answers before he left. 3 4 Councilmember Faust responded the answers to Mr. Kuharski questions were "yes,""yes" and 5 "maybe." He noted the issue of fees had been discussed previously and could be addressed 6 again;however, he warned in some cases more cost could be created. 7 8 Councilmember Faust explained the money did come back to the City from the liquor operation. 9 He noted the redevelopment of the Stonehouse would bring that piece of property onto the tax 10 rolls, as it would be commercial property. He indicated the old Stonehouse property would 11 generate somewhere between$60,000 and$100,000 a year in real estate taxes, depending on its 12 value. He noted only 47%to 48%of that amount came to the City,however. He stated the 13 City's liquor operation was currently diminished somewhat; however, he believed it would be 14 bigger and better when"up and running"this summer. 15 16 Councilmember Faust noted 18 months ago the City started the fire station process by creating a 17 task force that consisted of 19 people who met many times and held three or four public 18 meetings. He indicated a lease revenue bond was issued in May that saved$1 million in interest 19 because it was obtained at the bottom of the market. He added councilmembers were reelected 20 and he felt that was a strong endorsement of the City's plans. He noted it would not be cheap to 21 stop the process,as there would be no way to "go back to zero dollars." He added there would 22 be significant cost to step back and do the fire station another way. 23 24 Councilmember Faust indicated he had been an appraiser for 15 years and had never been able to 25 demonstrate a reduction in real estate value because of proximity to various buildings, as "every 26 person's pleasure is another person's pain." He noted one person might not like to live by a park 27 and another may seek out such a location. He added he overheard a father asking his son if he 28 would"like to live here because you could walk to school." He stated he understood people 29 were concerned because of the changes;however,the next generation probably would not know 30 the difference. He explained the task force had considered many sites and this site was 31 recommended, with no pressure from Council. 32 33 Councilmember Thuesen stated he wished to address the question of charging fees. He indicated 34 that item could be brought to the table but asked if the very same people who were on fixed 35 incomes and negatively impacted by tough economic times would be adversely affected by fees. 36 He noted it was probably true more service calls were going to elderly people on fixed incomes. 37 38 Councilmember Thuesen suggested that copies of Mr. Momson's presentation be made available 39 to residents. 40 41 Mr. Cavanaugh suggested information go out to the City's elderly residents regarding an 42 available program that allowed them relief from their property taxes. He explained a lien was 43 placed on their property that would be settled when the property was sold. Councilmember 44 Faust added the program was a State program and only 1% of the real estate tax had to be paid. 45 He indicated the rest became a lien on the property,which was a 3%loan with the State. He 46 stated this information would be included in the next newsletter.