01-03-2022 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes January 3, 2022 Page 3 Commissioner Wagner stated she supports the TIF project but has concerns with the high cost of soil remediation on this site. She stated they recently turned down a similar request located nearby for similar soil concerns. She asked if TIF were awarded, would the city be liable in the future if there were any structural problems with the buildings. She states she needs to have answers to the taxpayers if future problems occur. Mr. O'Neil stated there will be more detailed engineering plans that will need to be completed, followed, and inspected during the sequence of designing the site, and he anticipates the mitigation would need to be sufficient to support a building. He felt an answer about city liability would have to be answered by legal counsel. Commissioner Ovall stated the city could always be sued but the city would have to be shown to be negligent in this project and felt based upon what we know at this time, we couldn't ensure that we would be liable for any future problems. Commissioner Chuba asked if a hold -harmless clause could be added. Ms. Huot stated while she couldn't answer if the city may be liable in the future, she did note the structure is pay as you go, and the applicant would be paid as the mitigation is made and clean up of the site is done per the standard of the expectation of receiving TIF funds. There are conditions in the agreement itself that would hold them responsible for following or they wouldn't receive the TIF funds. She felt working with the city attorney could take steps to ensure the city is held harmless if the corrections were made to make the site buildable to ensure future safety and liability concerns. Chair Toth stated he presumed our engineers will have reviewed the reports from the soil borings to know how deep the bog is. Mr. O'Neil stated they have received a report from the applicant's engineers, who have indicated there is 5-7 feet of bog that needs to be mitigated. He stated it would be the engineer's responsibility to have that investigated and a mitigation plan in place, which would follow the city's permitting process. Mr. O'Neil commented on the financial analysis presented by Ms. Huot. The developer will be looking at a funding project through MHFA for funding to supplement the project budget and if awarded, the city would review to revisit the project and determine if additional monies would change the scope and scale and perhaps the project can grow. The notification of awards comes in April of 2022. The applicant is also exploring federal fundings that may be available. Ms. Huot stated if the project is awarded the grant funding, the city would have to review TIF based upon the amount rewarded. By April, we will know what is warranted and if it would affect the final TIF award. Still on the path that we knew. Contract will come later. Moved by Commissioner Chuba and seconded by Commissioner Ovall to recommend approval of the consideration of approval of the TIF Number 28 Plan and TIF District as outlined in the staff report.