05.01 - Conceptual Support for Estab of a TIF

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Economic Development Commission Minutes July 21, 2009 Page 2 of 3 1141.1 -------------------------------------- - - - - -- Developer Paul Tucci discussed the proposed project. He noted that he will be submitting plans and making application with the city today. Chair Larsen asked for discussion by the EDC members. Patrick Smith questioned what will be included in the grocery store. Mr. Tucci noted that it will include a pharmacy and possibly a bank; however, final plans for these operations have not been made. Patrick Smith noted that he is a supporter of small towns using TIF to attract investment in the community and to expand the job base and commercial property tax base. He noted that we need to think about what it does to existing businesses right now. Mark Jurchen noted that the project is exciting and he would be in favor of the project if there was no use of tax increment money. Cindy Rieck stated that as an Economic Development Commission we look at new development but it is also important to support existing businesses when using tax dollars. Mayor Nancy Adams noted that this request for tax increment is for a redevelopment TIF which includes eliminating blighted land and extending infrastructure. Ed Larsen stated that the original intention of TIF was for redevelopment and infrastructure and this project does meet the provisional intention of TIF which includes extension of sewer and street. Justin Bolz - Andolshek stated he supports Patrick Smith in the use of TIF for redevelopment. He stated that the net effect of job creation will be less than what is proposed by the developer. He further stated that using tax dollars to put someone else out of business will be a difficult decision. Ed Larsen noted that the City needs to look at the big picture and consider the long term effect to the community. He stated he felt this development would be a good improvement to community and would eventually bring more business to the community. Paul Tucci stated that he understands the issue. He indicated that the City isn't losing tax revenue, but the tax revenue is being deferred. He indicated that the tax increment will be used to pay down upfront costs such as a new public road, extension of force main, and installation of grinder and pump station and the redevelopment of the motel site with the intention of creating a buildable site. Patrick Smith questioned if it made sense to talk with other affected businesses in the area. Paul Tucci noted that this is a separate issue; however, he would ask the question. Patrick Smith noted that the City needs this project and stated it is an appropriate use of tax increment because it is for infrastructure. He stated that there is a benefit to the City.