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Councilmember Randle recalled when the City purchased the gas station, the Council made the same statement that the City was not in the business of real estate. He indicated the gas station property was $250,000 and it was still vacant. He questioned if it was wise for the City to spend $1.25 million for another property. Mayor Webster commented on how purchasing the gas station property would assist the City in determining what the future use would be on this site. She noted this property was purchased at a discounted price. She indicated the Lowry Avenue property was not coming to the City at a discounted price. Councilmember Doolan asked if the old Bremer Bank site would need any soil remediation work. City Planner Grittman explained he was not aware of any remediation work. He stated it was his understanding the perspective buyer would remodel the existing building. Councilmember Doolan questioned if the property owner had worked to find other affordable housing options. Mr. Yunker reported it was his understanding one developer took a project so far as discussing TIF request with Ehlers but understood it was not feasible to build on this property at this time given current market conditions. He commented on how remediation work may be necessary if the existing building were demolished and a new structure were constructed. Councilmember Jenson asked if charter schools were responsible for paying property taxes. Mr. Grittman stated charter schools were treated like other schools and were not responsible for paying property taxes. Councilmember Jenson was of the opinion that the purchase price was too high. Councilmember Doolan inquired if this property could be sold given the fact a rezoning would be required for the proposed charter school. Mr. Grittman stated the rezoning and PUD process has been discussed with the property owner. Council discussed extensively and gave direction to staff to pass along hesitation to the property owner given the proposed purchase price. A. Silver Lake Village TIF Districts Discussion Stacie Kvilvang, Ehlers, provided a PowerPoint presentation that explained Tax Increment Financing (TIF) Districts, the defining State Statute, along with the calculation of TIF cash flows using Hayden Grove as an example. She reviewed how TIF can be used for land purchase, site improvements, and construction of affordable housing. Ms. Kvilvang explained the restrictions on use of TIF funds, noting they have to be used for the purposed ‘pooling’ district. She presented further information regarding interfund loans, TIF investments and outcomes, market value increase, tax capacity captured in TIF, opportunities/potential of additional tax dollars, cash balances, pooling for projects, cash balances, and returned increment. Further discussion ensued regarding the City’s two active TIF Districts. Ms. Kvilvang commented on the need to plan for the future due to approximately $1.35 million in tax capacity being available for projects with no change in tax levy and discussed the opportunities that would be available to the Council. She explained the cash balances can be spent by the City, kept until 2030, or be returned. She discussed how it was important for the City to do something meaningful with these dollars.