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City Council Minutes <br />September 1, 2009 <br />Page 4 of 11 <br />----------------------- - - - - -- <br />Mr. Tucci presented an updated request for a redevelopment tax <br />increment financing. He identified a number of items that must meet <br />criteria as to whether the project qualifies for tax increment. He further <br />noted this will be determined by a study performed by an independent <br />agency hired by the City and paid for by Oppidan. Mr. Tucci explained that <br />the TIF will be use to pay for a sanitary force main line and a lift station <br />which will be able to be used by future development; a turn lane as <br />required by MnDOT; purchase of land for a road extension; and purchase <br />of the property that is presently being used as a motel and a residence, <br />and building demolition. <br />Council Member Ryan questioned what the assessable value of the <br />property will be after the project is complete? Paul Tucci stated that the <br />minimum assessment agreement would be for $4 million dollars. Council <br />Member Ryan asked how many other cities grant TIF for retail businesses. <br />Sheila Haverkamp stated that because this is a redevelopment district, the <br />thought is that we need to encourage redevelopment on the property. <br />Council Member Ryan asked how much of the property is bare land? <br />Sheila noted that a minimum of 15% or more of the site has to be covered <br />with improvements to qualify. Council Member Ryan questioned if the <br />City's Comp Plan identifies this property as high redevelopment potential. <br />`- Chuck Marohn stated that the property is not identified as a high potential <br />property for redevelopment. Council Member Ryan questioned why the <br />developer is not requesting JOBZ. Sheila Haverkamp stated that there is a <br />sunset date of 2015 for JOBZ and further that retail is not eligible for job <br />zone status. Council Member Ryan asked the Council if each member <br />would be willing to provide any other retailer in the City with equivalent TIF <br />on future projects. He indicated that he feels the Council is setting a <br />precedent. <br />Mayor Adams stated that she would look at each request based on <br />whether sewer, water, and streets are available. She indicated she would <br />be supportive of other requests but would take everything into <br />consideration prior to making a decision. <br />Council Member Nagel stated he concurs with Mayor Adams and would <br />be unwilling to concur with a blanket approval of TIF. He stated that he <br />would like the City to have a clear policy on when TIF should be granted, <br />however, it would not be good to make one policy where one size fits all. <br />Council Member Nagel stated that the new store would be a plus for the <br />community and he has no objection to a free enterprise situation. Council <br />Member Nagel stated that he feels the use of TIF in this instance creates <br />an unfair competition. He noted that the $300,000 for land cost of blighted <br />property is an issue that he has a problem with. He stated that he has no <br />problem with using TIF for acquiring and /or building infrastructure such as <br />