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H. R. A. MEETING <br /> 2 DECEMBER 10, 1991 <br /> 3 PAGE 2 <br /> 4 <br /> 5 <br /> 6 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 /> 9 <br /> 10 The initial property tax per unit in the Autumn Woods <br /> 11 development was projected to be $1, 100 in 1991. The per unit <br /> 12 property tax projections were made with 1988 State Legislature <br /> 13 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 /> 20 LaNel has petitioned the Hennepin County Assessor to lower the <br /> 27 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 /> 36 The City Manager recalled that at a previous Council work <br /> 37 session it had been decided that the present Council chooses <br /> 38 not to commit future Councils to a long term position on this <br /> 39 matter. It is the intention of the Council to evaluate this <br /> 40 matter on a yearly basis and on need. <br /> 41 <br /> 42 Mr. Lange stated he would prefer this matter be "procedural" <br /> 43 and not have to return each year for this entire process. He <br /> 44 felt only the review process would be necessary on an annual <br /> 45 basis. <br /> 46 <br /> 47 Motion by Marks, second by Enrooth to authorize the City <br /> 48 Manager and the City Attorney to draft this proposal as <br /> 49 previously defined for the next H. R. A. meeting on January <br /> 50 14th. <br /> 5 <br /> 5 The City Manager noted in his agenda letter that the infusion <br /> 53 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 />