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<br />City Council ]\1inutes <br />December 6, 2004 <br /> <br />Page 4 <br /> <br />Commercial Subsidy. Ms. Mehelich stated that the HRA also recommends that the City <br />Council approve the three resolutions approving the terms of internal loans in connection <br />with Downtown Phase I Tax Increment Financing DistrictNo. 22 for SAC, WAC, and <br />Land. <br /> <br />Mayor Klinzing questioned what the time frame for payback is on the SAC and WAC and <br />Jackson land.. <br /> <br />Ms. Mehelich stated that it would depend on inflation. Sid Inman of Ehlers and Associates <br />stated that the payback time frame will depend on the final market value of the project but <br />indicated that an estimate based on 3% inflation would take 15 years and at 1 % inflation <br />would take 20 years. He noted that this time frame includes the entire payback for all three <br />components. <br /> <br />Mayor Klinzing questioned in what order the payback will be completed. Mr. Inman stated <br />that staff has directed that SAC,W AC, and finally land. <br /> <br />MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY <br />COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-96 AUTHORIZING <br />EXECUTION OF A DEVELOPMENT AGREEMENT WITH THE MINOR <br />MODIFICATIONS AS PRESENTED WITH WAGE AND JOB GOALS SET AT <br />ZERO. MOTION CARRIED 5-0. <br /> <br />MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY <br />COUNCILMEMBER MOTIN TO ADOPT RESOLUTION 04-97 APPROVING <br />THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN <br />PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (SAC). MOTION <br />CARRIED 5-0. <br /> <br />MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY <br />COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-98 APPROVING <br />THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN <br />PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (WAC). MOTION <br />CARRIED 5-0. <br /> <br />MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY <br />COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-99 APPROVING <br />THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN <br />PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (LAND). <br />MOTION CARRIED 5-0. <br /> <br />4.2.B. Consider Resolution Authorizing Eminent Domain and Acquisition of Real Property for the <br />Downtown Revitalization Project and to Clear Title to an Existing Street - lackson Block <br /> <br />Director of Economic Development Catherine Mehelich stated that it has been determined <br />by staff and the city attorney that the city has free and clear title to approxllnately half of the <br />Jackson Block. Ms. Mehelich stated that the balance is still dedicated right-of-way and before <br />the city can vacate that right-of-way, the city needs to acquire the reversionary interests of . <br />the adjoining properties. <br /> <br />Ms. Mehelich stated that quit claim deeds have been acquired from The Bank of Elk River, <br />Keith Holme (Kemper Drug property), and Frank Galli (Diamond City Bread property) in <br />