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City of St. Anthony <br />CITY COUNCIL WORK SESSION <br />City Council Chambers <br />Minutes <br />September 23, 2019 <br />Present: <br />Mayor & Council. Jerry Faust, Mayor; Hal Gray, Councilmember; Randy Stille, Councilmember, Thomas Randle, <br />Councilmember and Jan Jenson, Councilmember. <br />Absent: <br />None <br />Staff: <br />Mark Casey, City Manager, Shelly Rueckert, Finance Director and Charlie Yunker, Assistant to the City Manager. <br />Consultants: <br />Stacie Kvilvang, Ehlers <br />Guest: <br />Kelly Doran <br />Call to Order: <br />Mayor Faust called the meeting to order at 5:30 pm <br />Doran Tax Increment Financing (TIF): <br />Kvilvang presented analysis of TIF application review. Analysis shows need for $3.1 million of assistance, <br />recommending a $2.5 million pay as you go note with an additional $600,000 grant from the existing TIF district. . <br />Faust – how did Ehlers get to $2.5 million note? <br />Kvilvang – result of the 25% pooling available. $1.3 million of extraordinary costs initially identified to prepare the <br />site (demo building and rebuild retaining wall). <br />Stille - Is “grant” the proper terminology? <br />Kvilvang – yes, being that the city is not expecting repayment. <br />Doran presented status of project planning and challenges with rising labor and construction cost along with <br />attaining high enough rents. Doran also stated they need to buy out Wal-Mart to break the existing lease.. <br />Gray – how does this compare to Lowry Grove, where TIF was denied? <br />Kvilvang – mix of building uses is different. <br />Faust – request was extraordinarily high and did not progress to any other options <br />Stille – discussed the impact of the cost of the site. <br />Doran – discussed 2-year long process of negotiating with Inland. Development projected to be 5.5% return on <br />cost at $1.85 p/sq ft <br />Randle – why not a TIF request earlier? <br />Doran – needed preliminary PUD to get accurate market study to know what assistance is needed. <br />Gray – what is the impact on city service? <br />Kvilvang – no anticipated need for additional staff/CIP based on this project <br />Faust – Council’s role is to balance the cost of TIF assistance with the value gained by the project