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City Council Minutes May 3, 2021 Page 4 city with the authority to use TIF and enter into an agreement with the developer. She indicated it also allows the developer to begin site preparation. Patrick Briggs, Briggs Companies, explained the purchase agreement is subject to the 20-year tax increment financing and the buyer will not proceed if the TIF is not for at least 20 years. He noted there will not be any movement on the site until the 20- year term is approved. Mr. Buchholz explained the eagerness for beginning construction is how quickly the costs of construction are increasing. He explained they still feel the project is feasible, but costs are already significantly higher than when the project was first presented. He indicated they want to make this work but would like to get started with contractors and subcontractors but cannot begin until they are certain the TIF will be for 20 years. Mayor Dietz indicated three councilmembers have expressed interest in allowing the 20-year tax increment financing, but the contract will not be considered until the May 17 meeting. He stated he believes this is a good project, but he is nervous about extending to 20 years and needs additional time to consider. Councilmember Westgaard stated the real numbers need to be flushed out before the contract is considered but he has heard the Council say this is a valuable project and a majority say they are in favor of a deviation in term length given the special circumstances of this application and the project site. Ms. Huot indicated the intent of tonight's conversation surrounding the developer's request is to provide as much information as possible to the Council without the Council making a final decision on the contract. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to establish Tax Increment Financing (Redevelopment) District No. 27 and adopt a Tax Increment Financing Plan. Motion carried 4-0. 8.1 All Aboard Minnesota Mr. Portner presented the staff report. Councilmember Wagner indicated she researched this project and believes this is out of the Council's area of expertise. She stated although she understands why Mr. Beaumont is asking for support, she does not believe this project would benefit Elk River and she is not willing to put her name on it. Councilmembers Westgaard and Beyer concurred adding the train would not make a stop in Elk River. The Council asked Mr. Portner to let Mr. Beaumont know the Council is not interested in providing a resolution of support. P 0 1 E I E 1 0 T NATURE