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City Council Meeting Minutes July 24, 2001 Page s 1 Councilmember Horst asked about the overall financial. He stated that $33,000,000 is the City portion 2 of what the City portion would be. Mr. Prosser added that, at this time, they are not recommending for . 3 the City to incur any obligation to buy the property and do the demolition. 4 Councilmember Horst asked where the gap was. Mr. Prosser stated that the cost to acquire, relocate, 5 demolish and public improvements equals roughly$33,000,000. He stated that adding the revenues 6 that would come from development, and the tax increments together then look at the cost of the project 7 also equals the gap. s Councilmember Horst asked if it was true that there was a$2,500,000 gap that would need outside 9 funding such as Metropolitan Council. Mr. Prosser stated that was correct, but values and costs 10 included in the estimates may also reduce the gap. 11 Councilmember Horst asked how large a development this was in terms of taxing. Mr. Prosser stated 12 that they were looking at an increment of $1,000,000 plus of new taxes. 13 Councilmember Horst stated that he thought the best option was the Corporate Campus idea because 14 of the scale in the population growth, but does not see how it can be paid for. Mr. Prosser stated that 15 the impact of Residential versus Corporate Campus have to be measured very carefully. He added that • 16 it is not accurate to look at a proportional increase in city services on a population basis. Mr. Prosser . 17 continued that retail has the greatest impact on city services, and that higher density housing is the most 18 efficient housing. 19 Planning Commissioner Chair Melsha stated that the Planning Commission struggled with the financial 20 feasibility, as well. He added that the details of their recommendation were that attention be paid to the 21 expenses incurred by the City as they go through the process. 22 Councilmember Horst stated that if they decided to approve to move forward, he needs to see some of 23 the models of higher density housing because it is very scary to him. He added that the City really 24 needs to be behind this project, and that he did not want to prevent the project from happening, yet 25 made his fears known. 26 Councilmember Thuesen asked about the twenty-five year TIF. Mr. Prosser stated that no action 27 taken tonight commits them to using TIF, and that they will need to examine that on an individual usage. 28 Councilmember Thuesen thought it was safe to say that a substantial portion of TIF would probably be 29 used for the project. 30 Councilmember Thuesen referred to the portion in the Redevelopment Plan that indicates that people 31 rent out of choice, not out of obligation. Mr. Rapp addressed Councilmember Thuesen's concern, and • 32 stated that, as the demographic bulge of the baby boomer generation goes through and people make a 33 variety of housing choices for a maintenance-free lifestyle, it is happening in increasing numbers.