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<br /> <br /> <br /> <br />City Council Minutes <br />March 5, 1985 <br />Page Two <br /> <br />capture the tax increment for an eight-year period, therefore, it was recommended <br />that the tax increment district be established only ~or the area that is proposed <br />to be developed immediately. Mr. Beck reviewed the financing plan proposed in the <br />tax increment plan and the time table required for review by all required parties. <br />Mr. Beck indicated that it was proposed that it would be a twenty-year bond issue <br />with capitalized interest for a two-year period, therefore, allowing for the capture <br />of the full increment. Mr. Beck indicated that the City Council establish other <br />tax increment districts within the economic development district to help cover the <br />shortfall in the last ten years of the bond issue. <br /> <br />Discussion was carried on regarding the tax increment plan, the proposed water <br />tower size, the proposed site of the water tower, the time schedule for the public <br />hearings and review of the County and the School District, and the possible means <br />of covering the shortfall. Mr. Peter Beck indicated that the City Council must de- <br />cidehow to cover that shortfall either by rate increases!,1 general tax levy, special <br />assessments, connection charges, or a combination of the above/possibilities. <br /> <br />General discussion was carried on regarding other cities' experience in tax increment <br />financing. <br /> <br />Mr. Peter Beck indicated that the tax increment financing plan was approached from <br />a very conservative standpoint to protect the City. Mr. Peter Beck indicated that <br />the developers were required to provide personal guarantees in the amount of $93,000 <br />should the development not happen. <br /> <br />Discussion was carried on regarding the 90 days allowed for the establishment of <br />a tax icrement district after the building permit is issued. Peter Beck indicated <br />that he is proposing that a public hearing be held April 1st to stay well within <br />the State Statute guidelines. <br /> <br />General discussion was carried on regarding the establishment of other tax increment <br />districts within the economic development district. Utility Commissioner Duitsman <br />indicated that he felt the water utility could not meet more than the costs they <br />are now facing. Commissioner Duitsman indicated that the City Council should consider <br />the water department's recommendation regarding size and location. General discussion <br />was carried on regarding the varioud means of covering the shortfall. <br /> <br />COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-5, A RESOLUTION AUTHORIZING <br />THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN TO BE FORWARDED TO <br />THE PLANNING COMMISSION, THE COUNTY AND THE SCHOOL BOARD FOR REVIEW AND COMMENT AND <br />THAT A PUBLIC HEARING ON THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING <br />PLAN BE HELD APRIL 1, 1985. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION <br />PASSED 4-0. <br /> <br />6. Preliminary Engineering Report - Water Tower <br /> <br />Mayor Hinkle indicated that Mr. Terry Mauer of Maier Stewart and Associates, was <br />present to discuss the water tower study with the City Council. <br /> <br />Mr. Terry Mauer indicated that in 1982, a water study had been done which determined <br />that the City did not have enough water storage. Mr. Mauer indicated that the water <br />tower study proposes both a 1 million gallon storage tank and a 750,000 gallon storage <br />