06-19-1989 CC MIN - Laserfiche WebLink

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Page 5 City Council Minutes June 19. 1989 ~ 5.4 Resolution to Advance Encumber MSA Funds for the Tyler Street Project COUNCILMEMBER DOBEL MOVED TO ADOPT RESOLUTION 89-43. A RESOLUTION ALLOWING FOR THE ADVANCEMENT OF MSA FUNDS FOR THE TYLER STREET PROJECT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.5 East Highway 10 Utilities Extension Gouncilmember Holmgren indicated that he would like the City to discuss the possiblity of the future extension of utilities. Mayor Tralle indicated that the City Council received a letter from Rob VanValkenburg. Marcie VanValkenburg. and Mike Leary. requesting a firm decision from the Council as to whether or not sewer and water will be extended to the eastern area along Highway 10 in 1989. The Mayor indicated that before the Council were two separate issues; one issue relating to the letter received from the developers of the AmericInn Motel and Conference Center and the other issue relating to Councilmember Holmgren's request of a study being done as to whether or not sewer and water could be extended to the eastern area of the City. ~ Mayor Tralle indicated that to extend water and sewer to the motel conference center site area would cost approximately $1.000.000. He indicated that the main question is where the funds would come from for this project. Dick Fursman. Economic Development Coordinator. indicated that there would be several possible areas of funding for this type of project. One would be excess increments in several of the TIF districts. He indicated that there are excess increments from TIF projects 1 & 3 and possibly from 4. Discussion was held on excess increments from districts 1 & 3. Lori Johnson. Finance Director indicated that the City must be sure that they can cover current debts before the excess increments are used for other proj ects. The City Administrator indicated that the excess increments usually are not used until the full debt is nearly retired. Therefore. there would be no extra money until near the end of the district period which would be 1996. He indicated that he felt there were too many unknowns. especially with future tax law changes. to spend all of the excess increments at this time. Gounc ilmembe r the City were reality. Holmgren questioned what a possible scenario would be if able to help make the motel conference center project a Dick Fursman. Economic Development Coordinator. stated that there would be the possibility of capturing future increments from new TIF districts. ~ Councilmember Holmgren questioned whether this was a City initiated project. The City Attorney stated that at this point it would be considered a City initiated project and would need a 4/5 vote. A simple majority Council vote is necessary if petitioned by 35% of the benefitted property owners.