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Applicant Briggs projected Phase II would be completed in 2028 and not 2027 as the <br />application stated. Mr. Ovall needed clarification of the housing study if it segregates <br />affordable housing from apartments. Ms. Othoudt stated that there is a demand for 864 new <br />units thru 2025 – 20% of that is for senior housing and 80% is for general occupancy, 395 <br />units of for sale housing, 172 market rate units and 93 affordable units to total the 864 <br />needed units. ousing. <br /> <br />Mr. Vitzhum asked about the timing of the TIF as it relates to the Phases of the project. He <br />asked how does this work as far as property value goes; So Phase I is completed is there a <br />certain property value increase – is the TIF based on that property value increase and then <br />the TIF doesn’t increase until Phase II is complete….he asked if somebody could walk him <br />through this process…Ms. Huot explained this scenario; if Phase 1 of the project is <br />completed in 2021 assume completed by 2021 with taxes payable in 2023 we would realize <br />$170,000 of tax increment for 2023. If Phase 2 is completed in 2025 taxes payable 2027 <br />$170,000 of increment totally $350,000 of increment 4 years later. Question is – what is 15 <br />years….2036 which would be 15 years after Phase 1 is complete or is it 15 years from when <br />Phase II is complete or subject to policy – can’t go beyond 25 years of aggregate for this <br />district. This being a redevelopment project it is limited to enter into contract within five <br />year of when the district is certified. The contact would be between city and the developer. <br /> <br />Mr. Tveite further clarified that if Phase II was not developed, it would not be eligible for <br />TIF. Phase I would go towards 75% of revenues and Phase II go towards the remaining <br />25%. <br /> <br />Mr. Hardin asked about the applicant’s financials – they were sent to Baker Tilly not to the <br />city. Ms. Huot clarified its typical at this point that we would receive a letter of interest from <br />the lender with conditions of TIF and as this is in a preliminary stage we would look for <br />receiving more information like the loan to value , bank requirements and their coverage <br />requirements which would support the need for TIF. And the banks specific terms and debt <br />as they proceed on their path as well. <br /> <br />Mr. Tveite stated that an appraisal would be needed to determine land value. <br />Mr. Ovall asked if staff had a recommendation. Ms. Othoudt stated the policy states TIF will <br />not be used in circumstances where land and/or property price is in excess of fair market <br />value – so it is important for the city to receive an appraisal. <br /> <br />Mr. Vitzhum stated that he is not at a point to comfortably approve this redevelopment <br />project/application without further information. Hardin and Tveite agreed. <br /> <br />Motion was made by Toth and seconded by Vitzhum to table action until more <br />information can be obtained by the applicant which includes; an appraisal of the <br />property, further defined redevelopment costs, impact for spin off development and <br />an environmental study. Motion carried 6-0. <br /> <br />5.1 Announcements <br /> <br /> <br />