12-08-1997 EDA MIN - Laserfiche WebLink

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EDA Minutes December 8, 1997 Page 2 e Paul indicated the major risk would be if future legislative modifications were made to T1F disallowing this activity. Paul explained that if $65,000 of the excess T1F funds were used to repay the EDA, $130,000 would be left to purchase land for development of the West Business park. Paul reviewed issues associated with Emmerich property and Chuck Christian's purchase agreement for the Gagne property as outlined in memo to EDA. Paul noted the EDA needs to spend or commit the excess TIF funds by end of this year or they will be lost. Paul reviewed the recommendations on page 5 of the staff memo. President Dwyer indicated he supported use of the $195,000 in the West Business Park. Commissioner Duitsman felt using the funds in the West Business Park would be in the best interest of the City. Commissioner Gongoll indicated use of the funds in this manner would be consistent with the City's Strategic Planning goals. It was the consensus of the EDA Commissioners to use the excess TIF funds for the West Business Park. e Charles Christian stated the City's purchase of the 4.4 acre parcel from him rather than Emmerich would be helpful since Mr. Gagne (Christian has a purchase agreement with Gagne) has indicated he wishes to sell his entire 20 acres. Paul explained staff is working with three developers and a business entity interested in leasing approximately half of a 30,000 square building on the Industrial Park lot. COMMISSIONER BENDER MOVED TO APPROVED THE FOLLOWING: 1. THAT 100 PERCENT OF EXCESS TIF FUNDS FROM DISTRICT NO.5 BE USED FOR A LAND PURCHASE IN THE WEST BUSINESS PARK. 2. THAT STAFF FINALIZE NEGOTIATIONS AND EXECUTE A PURCHASE AGREEMENT WITH MR. TONY EMMERICH FOR PURCHSE OF APPROXIMATELY 4.4 ACRES AT $1 PER SQUARE FOOT FOR A LOT WHICH FRONTS ON JOPLIN STREET. 3. THAT STAFF PROCEED WITH CREATION OF A NEW TAX INCREMENT DISTRICT ON THE INDUSTRIAL PARK LOT AT SUCH TIME WHEN A FORMAL REQUEST FOR ASSISTANCE IS RECEIVED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 5. Approve Resolution Moditvina Development District NO.1 and Establishina Tax Increment Financina District # 17 e Paul Steinman reviewed the schedule for establishment of TIF District No. 1 7 as outlined in his memo to the EDA. He explained the reason for electing to take the local contribution rather than a reduction in state aids, and how the local contribution would be made. Staff projects a payoff of the $160,000 request in