01-10-2005 EDA MIN - JOINT - Laserfiche WebLink

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Economic Development Authority Minutes January 10, 2005 Page 2 Commissioner Kragness (I-P'C) stated that goals of the HPC include (1) educating the citizens regazding the City's historic sites, and (2) to preserve old buildings/sites of historic value, and that a tool is the Historic Overlay Distra. He stated that it has been clearly demonstrated that there is a desire in the community to preserve the downtown, and that there are few great historic assets remaining in the City, which need to be preserved. Commissioner Kragness stated that there is an economic advantage in bringing people to the downtown, and that preservation incentives would improve the property owner's asset. He stated that they would like to layout the vision for the downtown to the property and business owners and encourage them to be a part of the process. He stated that the incentives would provide a tool so that they wouldn't have to make the improvements all by themselves. Commissioner Kragness stated that the process would complement what is already happening in the downtown. Commissioner Kragness stated that by meeting one or more of the 8 criteria for establishment of a district, a site would keep features that can be rehabilitated or restored. He noted that when the Historic Context Srudy was done, some properties which have beautiful architectural features could not be included, because the features were hidden behind facades. Ms. Mehelich stated that the EDA's Redevelopment Financing Program allows up to $50,000 in financing at 2 points lower than prime interest rate, and up to 10 percent of the financing must be used for facades. She noted that State law dictates the use of Tax Abatement and that there is no regulation on what the funds are used for except by city policy. She stated that the rehabilitation/restoration program could be "beefed up" with some type of eligibility standards so that they could see how the dollars are spent. Types of eligible expenses could include signage, facades, code improvements, etc. Commissioner Motion (EDA/HRA) asked what the expectation would be for the Tax Rebate Financing; if it would abate existing taxes or would new taxes be abated in addition to existing. Ms. Mehelich explained that it would not likely increase the tax value significantly on existing property unless it was vastly improved. Mr. Rohlf noted that it would also help keep the property from deteriorating and losing value. Commissioner Klinzing (EDA) stated that her concern is the impact on the downtown businesses and the economic viability of the downtown. She stated that it is difficult for the business owners to re-invest in their buildings. Commissioner Klinzing noted that some buildings have not increased in value in 5 -6 years, and therefore, there is no equity to finance uprovements and the buildings begin to deteriorate. She stated that the downtown owners have already been upset by the current redevelopment project, and that she was concerned how the His[oric Overlay District will affect them. She questioned if the property owners would view this as a way to improve the downtown, or would it be more hoops for them to jump through, and make it more difficult for them to get permits. Mr. Rohlf stated that establishment of historic overlay districts has greatly improved other communities by increasing value. Commissioner Motin (EDA/HRA) stated that he would have a problem with the overlay district unless he felt there was a super majority of the property owners buying into it. Commissioner Kragness (f II'C) stated they would need to made a case to them and educate them about the process. Commissioner Motin stated that what they hear from the land owners may be different from what the business owners have to say. Mr. Rohlf stated that if an area where businesses at both ends wanted the rezoning, but the ones in between did not, it may not be worth rezoning.