4.1 DRAFT MINUTES (3 SETS) 02-07-2022

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City Council Minutes Page 3 January 3, 2022 ----------------------------- Moved by Councilmember Christianson and seconded by Councilmember Beyer to continue the public hearing to January 18, 2022. Motion carried 5-0. nd 7.2 Tax Increment Financing: 28 Jackson Hills Residential Suites 2 Mr. O’Neill presented the staff report. Micaela Huot, Baker Tilly, discussed the applicant’s request for assistance, his qualifications, financing, tax increment assumptions, and the but-for analysis as outlined in her report. She further noted significant development and soil correction costs needed to allow development of the site. Mayor Dietz opened the public hearing. Pat Briggs, 19022 Freeport Street, stated he is required to raise the site up an extra foot because the ground water levels have changed. He stated the peat runs 8-14 feet below ground and this has increased his project cost, so he is requesting $1.62 million plus 4%, which comes just under the 90% request. Ms. Huot stated the total level of tax increment assistance hasn’t been determined at this point because the TIF contract will come later; however, the TIF Plan and the TIF District allows for a budget of $1.4 million as a 90% of TIF available. Mr. Briggs stated this TIF District would be tied only to this specific parcel/project. Ms. Huot clarified the boundaries of the TIF district include the entire 6-acre site. Mr. Briggs project is on a 2-acre site within the district. She stated there could be an amendment by resolution in the future which could reduce the district size if the area were to be made smaller. Mr. Briggs stated he is requesting the TIF funds only based on the forty-four units proposed. He stated he may want to increase the size of the project to make it feasible so he’s requesting that if this TIF were to be approved, he’d only apply the TIF to this specific project within the six acres. Mayor Dietz closed the public hearing. Councilmember Westgaard questioned what would happen with the remaining four acres of the TIF District if all the money is used for this 2.5-acre project. Ms. Huot discussed the options available to Council. Councilmember Wagner stated she previously asked about city liability if there were building structure failure down the road due to poor soil conditions and was told the city could potentially have a hold harmless agreement in place.