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1 PLANNING COMMISSION MEETING <br /> 2 AUGUST 18', 1992 <br /> 40 PAGE 5 <br /> 5 <br /> 6 There are two separate issues under consideration; one being <br /> 7 the demolition of a certain building on the property and the <br /> 8 other establishment of a Tax Increment District . <br /> 9 <br /> 10 it. is anticipated there will be -one and one half million <br /> 11 dollars of demolition.. The City Manager stated that the <br /> 12 district will be established for twenty-five years but it is <br /> 13 the hope of the Council to call in the bonds within twelve <br /> 14 years . He explained the procedures involved with tax increment <br /> 15 financing and how the property taxes are collected and used. <br /> 16 <br /> 17 Currently Apache Plaza is generating taxes at $1 . 50 per square <br /> 18 foot and they are decreasing steadily. Super markets usually <br /> 19 are taxed between $3 . 00 and $6. 00 per square foot . The <br /> 20 calculations for this proposed super market were set at $2 . 25 <br /> 21 per square foot for paying off the bonds . <br /> 22 <br /> 23 The project included 67 , 600 square feet for the super market. <br /> 24 and 100 ,.000 square feet for demolition. <br /> 25 <br /> 26 The City Manager reviewed what stores will remain in their <br /> 27 present location and which stores will be moved or relocated <br /> in the Apache Plaza project . He noted that the City will <br /> 40 locate its liquor store very close to the super market . Some <br /> 30 of the funding will a.lso be used for structural repairs to the ' <br /> 31 shopping center and perhaps a new roof . <br /> 32 <br /> 33 It was felt this project will realize quite a sum of taxes and <br /> 34 will generate an increase in taxes from surrounding commercial <br /> 35 properties . <br /> 36 <br /> 37 An example of tax increment financing is as follows : the <br /> 38 property owner pays $15, 000 in taxes . $10 , 000 of those taxes <br /> 39 are kept but $5 , 000 is given back to the property owner to pay <br /> 40 toward his debt service. The City Manager cited Autumn. Woods <br /> 41 as another excellent example of successful tax increment <br /> 42 financing. He noted that the surplus taxes does not go to the <br /> 43 City to use as revenue but rather can be used for public <br /> 44 improvements . <br /> 45 <br /> 46 A short period of time is preferable for tax increment so a <br /> 47 project will be paying higher taxes in less time. <br /> 48 <br /> 49 Commissioner Murphy inquired if any discussion had taken place <br /> 50 regarding the razing of Apache Plaza. The City Manager responded <br /> • <br />