10-06-2009 City Council Minutes - Laserfiche WebLink

Home Browse Search

City Council Minutes October 6, 2009 Page 4 of 12 ----------------------- - - - - -- public hearing indicating that it was a totally different issue that the request before the Council this evening. Brandon Andersen - 31291 Edgewater Farm Drive - Stated that he was the last business owner to receive TIF from the City which was for a manufacturing project. Opposed to TIF for this project and feels it would put local businesses to a disadvantage. MAYOR ADAMS MOVED TO CLOSE PUBLIC HEARING. COUNCIL MEMBER NAGEL SECONDED THE MOTION. MOTION CARRIED 5 -0. Mayor Malecha questioned if the easements are addressed in the developer's agreement? The attorney answered that they are addressed in the developer's agreement. Council Member Ryan indicated a concern about whether the "but -for" policy can be met. Council Member Ryan questioned the actual cost to the City with TIF versus using abatement. He indicated that the cost to the City for abatement has a higher impact than using TIF. Council Member Ryan questioned how the interest rate was determined. Council Member Ryan requested a clarification on the definition of public improvements. He �- further questioned whether the City will own the public improvements at the end? Council Member Ryan noted that this is an additional burden on an overtaxed older system. Council Member Ryan had a question on the substandard requirement for tax increment. Council Member Nagel noted that the applicants have been very open to the City during the process. He noted that he is dealing with an ethical concern that has been expressed regarding aiding competition against existing businesses. He indicated that he has been contacted by many people who have indicated a desire for a new grocery store; however, they have not talked about the subsidy issue. Council Member Nagel indicated that his conscience does not allow him to vote in favor of tax abatement subsidy when it is in direct competition of an existing business. Dave Sjoblad indicated that it is the intention of the developer to turn the lift station and sewer over to the City and questioned the approximate cost. Tim Houle indicated that the lift station cost about $100,000. Mayor Adams wanted to be clear that the tax abatement is for demolition, sanitary sewer, lift station and roadway improvements. Mayor Adams requested that the reference to fencing and fencing relocation be removed from the tax abatement documents.