HomeMy WebLinkAbout2002.08.08 CC Minutes - Special MeetingMINUTES FOR THE SPECIAL CITY COUNCIL MEETING OF AUGUST & 2002
PRESENT: Haas, Petryk, Puleo, Miron
City Administrator, Michael Ericson
CD Director, John Rask
Finance Director, Ron Otkin
Financial Advisor from Springsted, Paul Steinman
ABSENT: Mike Granger
City Administrator Mike Ericson thanked everyone for attending the meeting. Mayor Fran Miron
acknowledged the individual BEIP business owners and introductions were made.
hU NNESOTA STATE LEGISLATURE TIF CHANGES
Gene Ranieri, AMM Executive Director, explained the changes made by the Minnesota State
Legislature in 2001. It is the first time that there is a state tax on businesses. He explained other
TIF changes that were made by the legislature. There is no TIF relief from the state.
BALD EAGLE INDUSTRIAL PARK TAX INCREMENT DISTRICT
Paul Steinman, the City's financial advisor from Springsted, Inc., explained how. five years ago
the City Council took on risk when it sold construction bonds to build the park. The TIF district
appears to be healthy in 2001. He shared information with the business owners about the
uncertainty and potential for changes in property taxes in 2003.
DISCUSSION WITH CITY COUNCIL AND BEIP BUSINESS OWNERS
CD Director John Rask explained that all of the business owners faced a TIF shortfall for 2002.
Mayor Miron shared the Council's interest to provide a 50/50 cost sharing of excess TIF funds for
one year. All business owners were supportive of this except Tom Junnila, who represented the
Schwieter brothers. They want 100% from the City. Administrator Ericson stated that the issue
would be discussed at the Council's August 19m meeting.
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Miron made motion, Haas seconded, to adjourn the BEEP meeting at 9:35 am.
All aye. Motion Carried.
Michael A. Ericson
City Administrator