4.1. DRAFT MINUTES (2 SETS) 12-02-2013

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Joint Special City Council & ERA Minutes Page 2 November 4, 2013 Councilmember Wilson questioned the minimum numbers and when they were established. Ms. Hout noted the policy was amended in May 2006 but adopted in 1991 and stated staff could check on how reasonable the numbers are for current tax increment financing projects. Mayor Dietz questioned Council and HRA on whether and how TIF should be used for housing. Ms. Hout stated they should consider if it is their objective that TIF be used for housing. If so, then the policy should have some language to allow the city to explore options. If no, then this change should be made clear in policy. She further stated the city could limit the types of housing they would like to consider, such as making it available only for senior housing. Commissioner Toth questioned the criteria for the scoring sheet and had concerns with it being too flexible and setting precedence when allowing exceptions. Ms. Hout stated the policy acts as general guidelines for the city and would be flexible and dependent upon community need. Mayor Dietz suggested the policy be flexible enough so each project can stand on its own. Councilmember Westgaard stated he is not opposed to keeping housing as a consideration in TIF districts but he is not sure if the city should narrow down to development versus a redevelopment scenario. He'd like to allow for TIF for housing but put it as a lower priority over other types of applications. He'd like to stay more on the conservative side from the risk component. Commissioner Kuester stated the commission hasn't covered much with housing and believes the current project is an opportunity to go to market when there is a need in the community for senior housing. She stated the Mayfield Study backs up the need for senior housing. Commissioner Toth commented he likes the set up the city has with the MN Central Housing Partnership. He agreed on the need for some housing work done in the city. He stated TIF maybe an avenue worth exploring but it needs to be done carefully with a new evaluation criteria and looking to the long -term benefits for the community. Commissioner Chuba stated he feels it is important for the city to have life cycle housing with a range of affordable housing for the young and elderly. He stated the TIF financing should be flexible, but issues need to be worked out, such as how much TIF to allow, how long it should be good for, and how much increase in value is expected.