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• H. R. A. MEETING <br /> DECEMBER 13. 1991 <br /> PAGE 2 <br /> 4 <br /> 5 <br /> r- It was noted that the surplus can only be used in the Tax. <br /> 7 Increment District and the only parcel available for <br /> 8 development is the Meta property. <br /> 13 The initial property tax per unit in the Autumn Woods <br /> 11 development was projected to be S1, 100 iri 1991. The per unit <br /> 12 property tax projections were made with 1988 State Legislature <br /> 1_• 3 property tax class rate classifications. It was noted that <br /> 14 since 1988 the Legislature has changed and manipulated this <br /> 15 system. The result has been an increase per unit property tax <br /> 16 expenses. The extra expense of property tax per unit has <br /> 17 placed excessive burdens on the project's operating expenses. <br /> 18 It is the concern of LaNel that any additional increases. in <br /> 19 rent would increase the vacancy rate and bring about a revenue <br /> 20 loss. <br /> 21 <br /> 22 The Mayor noted that since the Legislature has made changes in <br /> 23 the past it is quite feasible that changes may be made in the <br /> 24 future. <br /> 25 <br /> 2 LaNel has petitioned the Hennepin County Assessor to lower the <br /> 2 valuation of the development. The City Manager noted that this <br /> 28 petition is pending but it allows the H. R. A. and staff time to <br /> 29 confer with Hennepin County regarding the petition. <br /> 30 <br /> 31 Frank Lange, representing LaNel, advised that the petition is <br /> 32 no longer "pending" but has been settled. Hennepin County has <br /> 33 responded that the valuation will not be lowered. No <br /> 34 litigation will be considered. <br /> 35 <br /> - The City Manager recalled that at a previous Council work <br /> 37 session it had been decided that the present Council chooses <br /> .8 not to commit future Councils to a long term position on this <br /> 3.9 matter. It is the intention of the Council to evaluate this <br /> -13 matter on a yearly basis and on need. <br /> ', <br /> 13 Mr. Lange stated he would prefer this matter be "procedural" <br /> =� and not have to return each year for this entire process. He <br /> =} felt only the review proc=ess would be necessary on an annual <br /> =� basis. <br /> -'-E• <br /> _47 Motion by Marks, second by Enrooth to authorize the City <br /> -18 Manager and the City Attorney to draft this proposal as <br /> 49 previously defined for the next H. R. A. meeting on January <br /> 14th. <br /> ,_ i <br /> The City Manager noted in. his agenda letter that the infusion <br /> 5 of $50, 000 per year for 1991 and 1992 is justified and that <br /> 54 there should be an annual review until the bonds and the tax <br />