04-05-1982 CC MIN - Laserfiche WebLink

Home Browse Search

1 City Council Minutes April 5, 1982 Page Four The City Administrator suggested that the Council review the proposal for a tax increment district for the Barthel planned unit development and further indicated that he would also review the proposal with the bond counsel and make a recommenda- tion to the City Council at a later date. Councilman Toth questioned the time schedule of the project. Mr. Tschida indicated that the Barthel development group would like some information back from the City Council within 30 to 60 days. Mr. Hutchinson indicated that they would be appear- ing at the May meeting for approval of the planned unit development and would like some information from the City Council at that time regarding the improvement costs for the project. Laura Manske from Barthe13 indicated that they were continuing to progress with the leasing arrangements but if a negative cash flow is projected, the project may not go. Cliff Lundberg indicated that the plan could include construction of utilities out- side of the district. The City Administrator further explained that new legislation does allow for util- ities improvement costs as eligible costs outside of the tax increment district. Mr. Murray Mills questioned whether downtown owners would be eligible for a tax in- crement district. The City Administrator indicated that each small business may be too small to actually create a tax increment district of its own. Mr. Mills indi- cated that the Barthel problem has notcome up over night and asked why all of a sudden the project cannot go as proposed. Mr. Hutchinson indicated that the asses- ment costs for improvements are more than anticipated which raises the leasing costs and then they are not competitve with other communities. Ms. Elaine Anderson suggested that the City of Elk River contact the City of Prince- ton regarding their downtown development project for information regarding City in- volvement in financing of development projects. Mayor Hinkle requested that City staff research the proposal of a tax increment fi- nancing project for the Barthel planned unit development and provide the City Coun- cil with such information. Councilman Duitsman indicated that he would appreciate feedback from the community regarding the establishment of a policy by the City for the construction and asses- sment of improvements. Mayor Hinkle asked that the city newspaper contact City staff for information regarding policy options for the construction and assessment of improvement costs. It was the general concensus of the City Council that City staff would provide to the City Council information regarding the establishment of a tax increment district for the Barthel planned unit development. 7. HRA Redevelopment Plan Mayor Hinkle introduced Mr. Don Schumacher, Chairman of the Housing and Redevelop- ment Authority, to the City Council and the audience. Mr. Don Schumacher reviewed the history prior to the forming of the HRA and the subsequent proposed redevelopment