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City Council Meeting Minutes October 12, 1999 • Page 7 t IX. NEW BUSINESS. 2 A. Resolution 99-065, re: call public hearing for amendment to Tax Increment Financing, 3 Mornson drew the Council's attention to a memo dated October 6, 1999 regarding Tax Increment 4 Financing (TIF). He explained that the City has approximately a$1.4 million fund balance in the 5 Kenzie TIF account. Due to a change in state law in 1999, the fund balance can only be used on 6 projects outside of the District until December 31, 1999. The balance can be used within the 7 District until 2008, which is when the District is set to expire. In addition, in 1996, the City 8 amended the TIF budget to allow certain activities to occur from any fund balances from the 9 Chandler Place and Kenzie Districts. Specifically, the City has two options: (1) Add activities to 10 the current plan (such as the purchase of the Hardies's property) which would require a hearing; 11 or(2) amend the budget in the current plan, which would require a resolution, and not a hearing. 12 Cavanaugh requested a description of the boundaries of the Kenzie District. Mornson responded 13 that Autumn Woods and the Kenzie Condos are the boundaries. 14 Marks questioned the possibility of the City completing the purchasing process of the Hardies's 15 property by year end. Ranallo stated that his concern would be completion of an environmental 16 study. Mornson clarified that a Phase I study could be completed, which would research the site, but that soil tests are not usually performed in Phase I testing. 18 Faust clarified that the Council had two issues to consider: (1) amend the TIF plan by resolution; 19 or(2) consider a swift purchase of the Hardies's property. Faust said in light of the current 20 discussions, it would appear that the property could be purchased; however, the purchase would 21 be risky because a complete environmental study would not be completed by the end of the year. 22 Faust agreed that the Council needed to consider the opportunity, however, all factors needed to 23 be weighed. 24 Thuesen agreed that, although it would be beneficial to obtain the property since it has been va- 25 cant, there would be a certain amount of risk involved with the environmental factors and contin- 26 gencies on the property. 27 Ranallo recommended that the City Manager prepare a resolution to amend the budget pursuant 28 to the plan presented. Mornson stated he would update the Council at the November 2, 1999 29 worksession. 30 Mornson continued to report that a meeting was recently held with the St. Anthony Shopping 31 Center owners and The Hitching Post owners. A survey will be done soon to obtain legal de- 32 scriptions, and it is Mornson's hope that a price can be agreed upon the end of the year regarding 33 green space. •