HomeMy WebLinkAbout2003.06.13 CC Minutes - Bald Eagle Industrial ParkhUNUTES FOR THE SPECIAL CITY COUNCIL MEETING OF JUNE 13, 2003
Mayor Fran Miron called the meeting to order at 8:00 am.
PRESENT: Granger, Haas, Petryk, Puleo, Miron
City Administrator Michael Ericson
CD Director John Rask
Finance Director Ron Otkin
This special workshop was called to discuss the 2002 TIF shortfalls in the Bald Eagle Industrial Park.
BEIP TAX INCREMENT FINANCING OVERVIEW
CD Director John Rask explained the staff memo provided to Council, which indicated that Nor -Lakes
owes $23,121 and Schwieters owes $1,714 for 2002. The other businesses have paid or do not owe for
2002. Finance Director Ron Otkin explained that the district has a healthy projected fund balance
without the need to collect future shortfalls. Council agreed to authorize the Finance Director to forgive
future shortfalls on an annual basis as long as the fund balance remains sufficient to make the principal
and interest payments on the outstanding tax increment bonds. Council stated that the City's action
would allow the businesses to reinvest in capital equipment and building expansion projects.
Mayor Miron welcomed BEIP business owners to the meeting at 9:30 am. Owners in attendance were:
Jim Taglia from Nor -Lakes; Joel Schwieters from J.L. Schwieters; Dave Schwinghammer from Como
Lube; and Dawn Northrup Murphy from Coating Solutions. Mayor Miron explained the history and
development of the BEIP. He stated that the City is fortunate to have the excellent companies
represented at today's meeting. The quality of the buildings and the number of jobs that have been
created are a very positive result of the City's vision and plan for the park. Council discussed with
business owners the different scenarios run by staff for the TIF fund balance and concluded that the
district is in excellent financial shape. Council agreed to have staff prepare a TIF Agreement for the
owners, which states the City will forgive future shortfalls on an annual basis upon review and
recommendation of the Finance Director in exchange for payment of the 2002 TIF shortfalls. The
business owners agreed with the position of the Council. Joel Schwieters stated he would like to
proceed with the construction of a fourth building. Council agreed to set up a tour of the businesses in
late October and to invite the Hugo Business Association.
ADJOURNMENT
Haas made motion, Petryk seconded, to adjourn at 10:25 am.
All aye. Motion Carried.
Michael A. Ericson
City Administrator