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hUNUTES FOR THE SPECIAL CITY COUNCIL MEETING OF JUNE 13, 2003 <br />Mayor Fran Miron called the meeting to order at 8:00 am. <br />PRESENT: Granger, Haas, Petryk, Puleo, Miron <br />City Administrator Michael Ericson <br />CD Director John Rask <br />Finance Director Ron Otkin <br />This special workshop was called to discuss the 2002 TIF shortfalls in the Bald Eagle Industrial Park. <br />BEIP TAX INCREMENT FINANCING OVERVIEW <br />CD Director John Rask explained the staff memo provided to Council, which indicated that Nor -Lakes <br />owes $23,121 and Schwieters owes $1,714 for 2002. The other businesses have paid or do not owe for <br />2002. Finance Director Ron Otkin explained that the district has a healthy projected fund balance <br />without the need to collect future shortfalls. Council agreed to authorize the Finance Director to forgive <br />future shortfalls on an annual basis as long as the fund balance remains sufficient to make the principal <br />and interest payments on the outstanding tax increment bonds. Council stated that the City's action <br />would allow the businesses to reinvest in capital equipment and building expansion projects. <br />Mayor Miron welcomed BEIP business owners to the meeting at 9:30 am. Owners in attendance were: <br />Jim Taglia from Nor -Lakes; Joel Schwieters from J.L. Schwieters; Dave Schwinghammer from Como <br />Lube; and Dawn Northrup Murphy from Coating Solutions. Mayor Miron explained the history and <br />development of the BEIP. He stated that the City is fortunate to have the excellent companies <br />represented at today's meeting. The quality of the buildings and the number of jobs that have been <br />created are a very positive result of the City's vision and plan for the park. Council discussed with <br />business owners the different scenarios run by staff for the TIF fund balance and concluded that the <br />district is in excellent financial shape. Council agreed to have staff prepare a TIF Agreement for the <br />owners, which states the City will forgive future shortfalls on an annual basis upon review and <br />recommendation of the Finance Director in exchange for payment of the 2002 TIF shortfalls. The <br />business owners agreed with the position of the Council. Joel Schwieters stated he would like to <br />proceed with the construction of a fourth building. Council agreed to set up a tour of the businesses in <br />late October and to invite the Hugo Business Association. <br />ADJOURNMENT <br />Haas made motion, Petryk seconded, to adjourn at 10:25 am. <br />All aye. Motion Carried. <br />Michael A. Ericson <br />City Administrator <br />