2008.07.21 EDA Minutes - Laserfiche WebLink

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DISCUSSION HUGO COMMONS TIF APPLICATION REVIEW Paul Steinman from Springsted provided the EDA with the outcome of the TIF application analysis for the former End Zone property. Bill Lentsch who has the purchase agreement on the property was present at the meeting. Staff recommended that the EDA direct staff on whether or not to draft a TIF Agreement with the applicant and bring it back to the EDA at their August meeting. Paul Steiman stated that the project would not be feasible with out the use of TIF. He explained the analysis of the TIF application. The project includes the acquisition, demolition, site preparation and construction of a 23,000 square foot commercial/retail building. The Developer estimates the total development cost of the project to be $4,353,490. The Developer has requested TIF assistance in the amount of $543,100 (present value) in the form of a pay-as-you-go reimbursement, which is an annual payment of tax increment from the City to the Developer. The property will pay an annual base property tax, to all taxing jurisdictions, of $9,906 through the term of the district. We estimate the annual tax increment reimbursement to commence in year 2 (2010), with a payment of $32,251, and the first full year of reimbursement in year 3 (2011) of $50,461 based on a total Estimated Market Value of $4,159,450. Paul stated that the project does not yet have financing and will not move forward until 60% is leased. The EDA generally agreed with the analysis of the TIF Application. Denaway made a motion, seconded by Klein, for staff to prepare a TIF Agreement and bring back to the EDA for review at their August meeting. All aye. Motion Carried. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of the downtown redevelopment projects. CD Director talked about Ricci's Restaurant and the status of the building. He stated that the City will need to work with the owners of the property because of intersection improvement in the area. Chuck Lowell's pole barn has been removed from his property located on Finale. UPDATE ON BR&E SUBCOMMITTEE The Associate Planner updated the EDA on the progress of the BR&E Subcommittee. The Business Profile Questionnaire is planned to be sent out in the next week. This will give the committee an idea of the businesses that would like a case study completed on their business or what other areas are needed for help. The committee will also be doing site visits to businesses in the near future. DISCUSSION ON MARKETING AND PROMOTION OF THE CITY The City has repeatedly received praise for its efforts in managing the recovery process following the disaster. The city staff believes the extraordinary media coverage the City has received during the past few weeks has cast a positive spotlight on the attitude and professionalism found within the City of Hugo. Staff discussed with the EDA ways to promote the City during this unique time as a good place to locate a business.