2010.11.08 EDA Packet - Laserfiche WebLink

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Staff recommended that the EDA discuss each topic and provide direction to staff on how to , move forward. Miron stated that he liked the idea of partnering up with Washington County for economic development incentives like tax abatement. Denaway stated that we do not lose anything by requesting that the County certify the district on the original request date. TIF is certain in this case and tax abatement is not. The CD Director stated that we can drop parcels from the district at any time if we leave the TIF district as is, but there may be other incentives for developers that the City can provide. Thistle stated that he thinks the EDA should request certification on the original date. The City has spent time and money on the creation of the district. The City has been advertising the TIF District to the public. Denaway made a motion, seconded by Klein, to move forward with option one and request that the County certify the district on the original request date. Staff should work on other development incentive if TIF Financing does not work for a project. All aye. Motion Carried. DISCUSSION ON CITY RENTAL PROPERTIES IN DOWNTOWN The City owns two rental properties in downtown across from City Hall (barber shop/printing building and a duplex). For the last several years the duplex has been rented out and the barber shop has been rented out. Staff discussed what the future will be for the two building with the EDA. The CD Director stated the house that the City rents out is in bad condition and will be vacant soon. The print building is also expected to be vacant soon. The buildings could be rented out again or demolished. Miron asked what the holding costs for each building was. The CD Director stated that staff did not have that information for the EDA this morning, but the City does pay insurance, utilities and staff time to manage and maintain the buildings. Miron asked staff to bring the holding costs to the EDA at their next meeting. Klein asked if we take then down, would that be an incentive for developers to come to Hugo and build in downtown. Arcand asked what the inside of the buildings looked like and would be going in and fix them up to rent out again. The CD Director stated that there are a lot of items to Fix and would be a large cost. Thistle stated that once a building is vacant it starts to look bad pretty quick and becomes a security issue. If the buildings are not rented out they should be removed. Miron stated that the EDA should discuss this item at their next meeting when they can look at the holding costs for the buildings.