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City Council meeting of May 24, 2004 <br />Page 3 <br />TAX ABATEMENT FOR CSAH 8 REALIGNMENT PROJECT <br />Council returned at 8:40 pm from a brief recess from the regular Council meeting and reconvened <br />in a workshop. Paul Steinman and Mikaela Huot from Spingsted conducted a session on the use of <br />tax abatement as a financing tool for the CSAH 8/14 realignment project. Former Mayor Joe <br />Marier joined Council at the dais to learn more about tax abatement. <br />PRESENT: Granger, Haas, Petryk, Miron <br />City Administr4tor Mike Ericson; CD Director Bryan Bear; and Finance Director Ron Otkin <br />ABSENT: Frank Puleo <br />Paul and Mikaela provided an overview of tax abatement as an economic development tool for the <br />City. Specifically, tax abatement can be used to fund a portion of the right-of-way acquisition <br />costs of CSAH 8. The City can request county and school district participation. General <br />obligation bonds supported by tax abatements may be issued without a referendum, and such debt <br />does not count against the city's debt limit. Tax abatement levies are not subject to levy <br />limitations. Paul and Mikaela will assemble a draft tax abatement policy for the June 7, 2004, City <br />Council meeting and will notice a public hearing for June 21, 2004. City Administrator Ericson <br />and Council Member Petryk will meet with school Superintendent Ted Blaesing next week to <br />discuss their possible participation. <br />ADJOURNMENT <br />Haas made motion, Granger seconded, to adjourn at 9:50 pm. <br />All aye. Motion Carried. <br />Michael A. Ericson <br />City Administrator <br />