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'> -2- f E Motion by Councilman Ranallo and seconded by Councilman Marks to adopt Resolution 80-016 with the clear understanding such a change ' does not in any way imply a raise in City taxes. RESOLUTION -80-016 -- A. ESOLUTION .80-016 -- A. RESOLUTION SUPPORTING THE K_11.1611./L.M.C. ` BILL TO INDEX -THE-_LEVY BASE INCREASE- f. Motion carried unanimously. Mr. Fornell ' s February 6th listing of questions and issues dealing with community development policies had been provided at the Council 's request. Also provided were two February 8 assessments of tax in- crement financing for various City sites from Gary Winter, the League of Minnesota Cities '- community development analyst.. who had participated in the ,January 31 work session and who now raised the previously unforeseen question of the tax status for the senior federation who are proponents of the senior housing project on Kenzie Terrace, which might make that organization ineligible for increment tax financing. It was his opinion that the federation probably qualifies as a non-profit, charitable organization which does not pay real estate taxes. He did not know there was a question regarding the federation's E tax status at the time the property in question was rezoned, Mr. C Soth told Councilman Ranallo, but it was his opinion that . the governing question to be resolved should be whether. the federation • is a charitable organization or just a non-profit entity. The Manager pointed out that the City had relied_ to some degree on the ft expertise of two of the federation' s board, Don Risk who heads the Minneapolis Industrial Development Commission, and former Minneapolis Mayor Al Hofstede, who had urged the Council at their,-January 22 meeting to rezone the Kenzie Terrace property, grant the variances, and consider the use of tax increment financing- for the project. Councilman Marks did not believe the Council .could be faulted in their desire to provide this type of housing for the City for ac- cepting in good faith what had been told -them by the proponents. Councilmen Ranal-lo and .Letourneau agreed the. City didn't need any more tax exempt properties and wanted no further action taken on community development issues until the questions- regarding- this project had been clarified. . They reiterated the .reluctance. they had expressed about rezoning that property in--haste. The Mayor said the difficulties encounteredwith this complicated matter as well .as -her own inability -to get firm answers from the governmental i agencies she had contacted had convinced her the City must seek the expertise of outside consultants to get a clearer picture of the �F .options open .to- the City in the area of redevelopment. Mr. Fornell agreed,- say_ing- the. staf f has neither the time. nor the expertise to provide such direction. -Motion by Mayor -Haik and seconded by Councilman Ranallo to direct • the City Manager, before the next Council meeting, to solicit pro- posals for community development expertise. Motion carried unanimously. - :I