02-10-1992 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes February 10, 1992 Page 2 . Bill Rubin further explained that the Chuba Company is proposing to construct an office condominium totalling approximately 6,000 square feet with a finished market value of approximately $465,000. Bill Rubin explained that staff is proposing to utilize funds from TIF Districts *1 and *3 rather than create a new tax increment district. Bill Rubin indicated that the City's non-refundable application fee of request from the Chuba Company modification to TIF Plans *1 and legal expenses to a minimum, staff the request be charged rather than existing TIF policy requires a $5,000. He stated that because the is for $20,000 and because the *3 can be handled internally, keeping is proposing that a fee of 10% of the $5,000 fee. Discussion was Districts *1 and intent of the development. held *3. EDA by the EDA regarding use of TIF Funds from TIF Commissioner Tralle stated that it has been the and Council to use these TIF Funds for economic Commissioner Schuldt arrived at this time (7:20 p.m.) Commissioner Tralle stated that the use of TIF Funds is intended to create new jobs. He questioned if some of the proposed tenants would be new to the area. Carol Luukkonen, representing Dennis Chuba, who could not attend the meeting, indicated that some of the tenants would be new to the area. . Commissioner Dwyer stated that this request is a logical use for the existing TIF Funds as it will assist in extending the commercial area and that the local taxing jurisdictions will benefit immediately because a new TIF District will not be created. Commissioner Tralle indicated his concern regarding the source of financing. He indicated that other than an SBA loan, TIF financing and grants, there were no other sources of financing listed from the Chuba Company. He indicated his concern for the City promising $20,000 without a commitment from the applicant. Carol Luukkonen indicated that there would be commitments from the tenants of the building before the project moved forward. Commissioner Dwyer suggested having a development agreement that requires commitments from the end users of the project prior to the City granting the TIF Funds. Bill Rubin also suggested that the agreement require lein waivers on the demolition expenses so that the TIF covers the true cost of the demolition up to, but not exceeding, $20,000. Commissioner Holmgren indicated he had a concern regarding the City assisting the contractor and not the property owner. He indicated that he is not against the project, however, he does have some concerns regarding the way the request is set up. . COMMISSIONER TRALLE MOVED TO RECOMMEND TO THE CITY COUNCIL THAT MODIFICATIONS TO TIF PLANS *1 AND *3 BE INITIATED SO AS TO OFFER ASSISTANCE UP TO $20,000 FOR THE CHUBA COMPANY WITH THE STIPULATION