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<br />e <br /> <br />e <br /> <br />- <br /> <br />MEETING OF THE ELK RIVER CITY COUNCIL <br />HELD AT THE ELK RIVER CITY HALL <br />MONDAY, MARCH 26, 1990 <br /> <br />MEMBERS PRESENT: <br /> <br />Vice Mayor Schuldt, Councilmembers Kropuenske, Holmgren <br />and Dobel <br /> <br />MEMBER ABSENT: <br /> <br />Mayor Tralle (illness) <br /> <br />STAFF PRESENT: <br /> <br />Pat Klaers, City Administrator; Lori Johnson, Finance <br />Director; and Harry Hoffman, Financial Consultant <br /> <br />1. Call Meetin~ to Order <br /> <br />Pursuant to due call and notice thereof, the meeting of the Elk River <br />City Council was called to orde~ at 7:00 p.m. by Vice Mayor Schuldt. <br /> <br />2. <br /> <br />Consider 3/26/90 City Council A~enda <br /> <br />COUNCILMEMBER DOBEL MOVED TO APPROVED THE 3/26/90 CITY COUNCIL AGENDA <br />AS SUBMITTED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION <br />CARRIED 4-0. <br /> <br />3. <br /> <br />Open Mike <br /> <br />Otsego Township resident, Wally O'Dell, was present to discuss with the <br />City Council his concerns over the use of Tax Increment Financing. <br /> <br />Mr. O'Dell indicated that he was present to discuss his concerns from <br />three different points of view. These points of view were as a partner <br />in the Darkenwald Development Group, a resident tax payer of the area, <br />and as a concerned citizen over adequate funding for the school system. <br /> <br />Mr. O'Dell stated his concern about the very thin line between <br />appropriate use of Tax Increment Financing and the abuse of this <br />economic development tool. His concern regarding Tax Increment <br />Financing (TIF) related to the removal of funds away from the tax base <br />which has a direct relationship to the amount of funds available to the <br />school system. As a developer, Mr. O'Dell indicated is concern about <br />unfair competitive advantage being given to one project versus another <br />project which has similarities and yet not receiving an economical <br />advantage through Tax Increment Financing. Mr. O'Dell indicated his <br />position that TIF should only be used when it is going to help provide <br />additional jobs to the community. <br /> <br />Vice Mayor Schuldt thanked Mr. O'Dell for his comments and indicated <br />that the EDA has expressed its desire to use extreme caution in <br />authorizing future Tax Increment Financing Districts. Additionally, <br />Vice Mayor Schuldt noted that the Legislature may greatly reduce or <br />eliminate this economic development tool in the future. <br />