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• <br /> MEMORANDUM <br /> DATE: September 17, 1996 <br /> TO: Mayor and Councilmembers <br /> FROM: Michael Mornson, City Manager <br /> ITEM: CUB TIF PACKAGE <br /> On Monday, September 16th, I met with Jerry Gilligan of Dorsey & Whitney <br /> and Bob Thistle of Springsted to discuss and review the CUB TIF package. <br /> The primary issue was whether or not the City should de-certify the New <br /> • Market building out of the Apache TIF District. By leaving the New Market <br /> building in the district it will cause a negative drag for 1997 in the amount of <br /> $24,000. <br /> In 1998 the property becomes a knock-down property if no activity has occurred <br /> on it for three years. When it becomes a knock-down property, the negative <br /> drag goes away. When redevelopment occurs where the value of the property <br /> increases, the negative drag goes away. The bottom line is the negative drag is <br /> only for one year. <br /> RECOMMENDATION <br /> Leave the property in the Apache TIF District to give us the flexibility of <br /> provided TIF assistance to redevelop the property and it allows us to use the <br /> TIF from the property on other projects. If we de-certify the property, it would <br /> cost us more than $24,000 to put it back in the district, plus the City would <br /> have to comply with the new TIF laws, which means LGA penalty. <br /> • <br />