05-03-2021 Regular CCM - Laserfiche WebLink

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City Council Minutes May 3, 2021 Page 3 Mikaela Huot, Baker Tilly Municipal Advisors LLC, reviewed a PowerPoint outlining creation of a Tax Increment Financing (TIF) District and adoption of a TIF plan. Mayor Dietz opened the public hearing. Mark Buchholz, Stonewood Development, thanked the Council for hearing his request. He stated he is excited to be a part of the City of Elk River. There being no one else to speak to this issue, Mayor Dietz closed the public hearing. Councilmember Westgaard indicated he believes looking at the validation on the appraisal is the biggest piece for him to make sure the project aligns. He believes the HRA's recommendation and Commissioner Ovall's comment during the HRA meeting summarizes the point well that the city's normal term is 15 years, but the state allows for a longer term. He indicated he agrees with the HRA that this is a good opportunity to get the site redeveloped. He explained supporting this request makes sense to him given the project, project site, condition of the property, and the opportunities that exist to assist the project. Mayor Dietz questioned the project's tax value once the project is complete. Ms. Huot indicated the estimated tax value of both phases completed is $21 million plus any future inflation. Mayor Dietz indicated he does not recall anyone mentioning the 20-year term when this item was previously discussed. He stated he is not a fan of extending the term to 20 years as he believes 20 years is too long of a term and deviates too far from the city's policy. Councilmember Wagner indicated she believes this project is unique in that it includes both redevelopment and housing. She explained the city has not extended the 15-year term for housing but has extended the term for redevelopment. She has concerns about deviating from the policy but HRA Commissioner Ovall did a great job at the preceding HRA meeting of explaining how the Finance Committee arrived at their approval recommendation. Councilmember Beyer indicated he understands this is a big commitment and a deviation from typical city policy but sometimes you must take a chance. He explained he is also looking at it with the perspective of getting two major items checked off with creating housing and getting rid of a lot that has been vacant for some time. Ms. Huot clarified the action requested tonight is to consider creation of the Tax Increment Financing District No. 27 and adoption of the Tax Increment Financing Plan and in no way obligates the city. She explained if approved, this provides the r0 M E R E 8 B 1 NATURE