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City Council Regular Meeting Minutes December 10, 2019 Page 5 Motion by Councilmember Jenson, seconded by Councilmember Gray, to approve Resolution 1 19-02; A Resolution Approving Summary Publication for Ordinance 2019-12. 2 3 Motion carried 5-0. 4 5 D. Resolution 19-093; A Resolution Approving Contract for Private Redevelopment with 6 Doran SLV, LLC. 7 8 Ms. Stacie Kvilvang, Ehlers & Associates made a presentation to the City Council. 9 10 Councilmember Jenson stated the City is providing an aggregated TIF package and this project is 11 building two different buildings, one at a time so how does the City ensure the second building 12 will get built reasonably against the plan that has been identified. Ms. Kvilvang explained there 13 are really no assurances that it will get built so if in fact something were to happen in the market 14 or other things come forward where the company is unable to get financing there is no guarantee 15 that the second building will get built; however, the City is not required to provide that second 16 note, if in fact that does not happen. 17 18 Councilmember Stille indicated the City may not want the second building to be constructed if 19 there was a change in the economy as well. He asked what the assessed value of the property is 20 now. Ms. Kvilvang thought it was under ten million right now. 21 22 Councilmember Stille asked if a reasonable tax number per unit would be $3,500. Ms. Kvilvang 23 indicated that was correct. 24 25 Councilmember Stille indicated the taxes that this will generate for the community and as a 26 revenue source is $1.736 million and is where the increment come from and the difference 27 between $1.7 million and the taxes of what the property is currently generating which is less than 28 $1 million and is where the increment is and what is being talked about regarding the assistance. 29 Ms. Kvilvang indicated when the TIF District is done the City will benefit more from the 30 apartments being there then the commercial development because the valuation is so much 31 higher but more importantly, the City does not receive the benefit as much of commercial taxes 32 as it does from the residential taxes of the apartments. 33 34 Councilmember Stille thought this would be a good project for the community. He noted the 35 duration of the TIF note is seven and nine years and could actually go up to twenty-six years so 36 what is being proposed is pretty short term in the marketplace. 37 38 Motion by Councilmember Randle, seconded by Councilmember Jenson, to approve Resolution 39 19-093; A Resolution Approving Contract for Private Development with Doran SLV, LLC. 40 41 Motion carried 5-0. 42 43 RECESS & RECONVENE 44 45 Mayor Faust recessed the meeting at approximately 8:00 p.m. to move into the HRA meeting. 46 15