11-07-1988 CC MIN - Laserfiche WebLink

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Page 4 e City Council Minutes 11/7 /88 COUNCILMEMBER SCHULDT MOVED TO APPROVE SPENDING $11.000 TO HAVE BAURER AND ASSOCIATES. LTD. COMPLETE. A BOARDWALK MASTER PLAN. COMPLETE WITH SURVEY WORK AND ELEVATION WORK. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 4-0. Mike Mulrooney and Dick Fursman discussed with the City Council the concept of doing a redevelopment district for the reconstruction of the hardware store. This would involve the use of Tax Increment Financing funds. but would be different than the eight year economic development projects that have utilized TIF funds in the past. The redevelopment district could last as long as 20 years and revenues captured from this project to be used to help reconstruct the hardware store at a more extensive level than would typically take place. and for the construction of the previously discussed boardwalk. The redevelopment district is anticipated to be only the building site under question and that the City could very clearly meet the letter of the law and the "but for" requirement for use of TIF funds. The rational for using TIF funds for this project is to financially help reconstruct a hardware store that is much more than a basic building and which would help the City accomplish its goal of emphasizing the river as an economic development tool. e Some members of the City Council again questioned whether the use of TIF for the boardwalk. or even for the reconstruction of the hardware store was appropriate according to the intent of the law. Also the financial need for use of TIF in the reconstruction of the hardware store was questioned. The staff indicated that information on the intent and philosophy of the Tax Increment Financing Law would be distributed to the City Council and that financial figures on the need for city assistance in the reconstruction of the hardware store would also be distributed to the City Council when available in approximately 30 days. COUNCILMEMBER TRALLE MOVED TO HAVE THE STAFF EXPLORE THE FEASIBILITY OF CREATING A REDEVELOPMENT DISTRICT AND A TAX INCREMENT FINANCING PLAN AT THE SITE OF THE OLD HARDWARE STORE AND DENTIST OFFICE FOR THE RECONSTRUCTION OF A NEW HARDWARE STORE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.2. Discussion: Economic Development Activities Update Dick Fursman and Mike Mulrooney updated the City Council on: 1) the Hardees proposal to purchase the Sherburne County property on the edge of the downtown district; 2) the business retention surveys being sent out to local businesses; 3) the revolving loan status; and 4) the future marketing plan that would target specific needs of Elk River. 5.3. Softball Lights Lease/Purchase Agreement e COUNCIL MEMBER TRALLE MOVED TO APPROVE RESOLUTION 88-91. A RESOLUTION WHICH STATES THAT THE LEASE PURCHASE AGREEMENT ENTERED INTO BETWEEN THE CITY AND FIRST CONTINENTAL LEASING. CORPORATION FOR THE SOFTBALL COMPLEX LIGHTS BE DESIGNATED AS A . QUALIFIED TAX EXEMPT OBLIGATION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0.