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City Council Minutes <br />April 1, 2024 <br />Page 3 of 4 <br />1 1.1 Policy: Tax Increment Financing for Housing <br />Mr. O'Neil presented the staff report. He sought direction for the Council's position for the use of <br />TIF for housing projects. <br />Councilmember Westgaard stated he prefers TIF for economic development purposes the <br />increase the tax base and creates jobs. <br />Councilmember Grupa agreed with Councilmember Westgaard. <br />Councilmember Westgaard added that for housing use like the former Saxon property its use was <br />due to it being a blighted property. <br />Councilmember Wagner stated that housing should be built on its own merits. Until we have a <br />new housing study that shows a need. <br />Councilmember Beyer echoed other's comments and agreed the Saxon property was an eyesore. <br />Mayor Dietz indicated we currently didn't have a need to subsidize housing. <br />The Council consensus was there was no desire to use TIF for housing projects. <br />11.2 Tax Increment Financing Reimbursement: Main Street & Gates Avenue <br />Mr. O'Neil presented the staff report. He asked the Council's opinion on looking into a TIF district <br />or abatement to recover the $1.3 million used by the HRA to prepare the Main Street and Gates <br />Avenue project area for development. The time limit of creating a TIF district to recover these <br />costs (three years) has passed, so a statutory exception would need to be pursued through a <br />legislative request. <br />Mayor Dietz asked why this was not brought before the Council before the three-year period was <br />up. Mr. O'Neil responded that a project in had was required. Without a project, the clock was <br />ticking. <br />The Council was supportive of looking at options to recover costs. Staff will prepare a written <br />request to legislators asking for an extension and have the Council sign it. <br />11.3 Direction on Affordable Housing <br />Mr. O'Neil presented the staff report. Duffy Development asked if the city would consider <br />developing a formal community development initiative for housing addressing goals based on <br />geographic needs and affordability. This is not something that the Comprehensive Plan addresses. <br />Councilmember Westgaard noted that a housing plan could go into more detail regarding specific <br />locations and types of housing as well as discussing a full spectrum of housing costs that would <br />meet the needs of all levels of employees within a company. <br />Mr. O'Neil presented the option of partnering with the third party who is conducting the housing <br />Page 14 of 201 <br />