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<br />Economic Development Authority Meeting <br />November 10.1997 <br /> <br />Page 3 <br /> <br />e <br /> <br />wherein the EDA indicated its support for use of TIF if an industrial component is <br />included within the project. Mr. Gleekel indicated that the developers are <br />negotiating to purchase additional property (the Vandenberg property) in order <br />to have some land available for industrial development. The financial feasibility <br />study for the project indicates that city assistance is necessary in order for the <br />project to be accomplished. Mr. Gleekel noted that he was the attorney that <br />has been dealing with the land use and mobile home closing issues on behalf of <br />the developer. <br /> <br />Pat Pelstring, Pelstring Capital Corporation, indicated that he has recently been <br />hired by the developers to assist in the TIF application for the project. Mr. <br />Pelstring noted some of the difficult issues associated with this project, including <br />the buy-out cost of the mobile homes, the large amount of soil corrections that <br />are needed on the site, and the utilities that run throughout the site. Mr. Pelstring <br />noted that it is his belief that the project can qualify as a redevelopment district <br />and, when fully developed, the project can generate approximately $4 million <br />of increments. Mr. Pelstring indicated that the developers are not looking for an <br />advantage, but only assistance to bring the site up to a competitive level. It <br />was noted that the developers are not in a great hurry at this time, but are only <br />looking for general support for the concept of using TIF and that details of the <br />proposal will be submitted later. <br /> <br />e <br /> <br />A number of Authority members indicated their general support for the proposal <br />if it contains industrial property and that it could not support using TIF specifically <br />for the commercial segment of the project. The Authority also indicated its <br />support for TIF if this Economic Development tool could assist the City in <br />covering some of its costs for extending utilities to the site. The Authority was firm <br />in its position that it cannot use TIF to provide the developers with a competitive <br />advantage over other commercial projects. <br /> <br />6. <br /> <br />Tax Increment District No.5 Plan Modification <br /> <br />Executive Director Paul Steinman provided an overview of the proposed <br />modification to TIF District No.5. Paul recommended that the EDA approve the <br />plan modification in order to allow the expenditure up to $225,000 for the <br />purchase of property and/or to complete public improvements within <br />Development District No.1. <br /> <br />COMMISSIONER DUITSMAN MOVED TO APPROVE THE TAX INCREMENT DISTRICT <br />NO.5 PLAN MODIFICATION TO ALLOW THE EXPENDITURE OF UP TO $225,000 FOR <br />THE PURCHASE OF PROPERTY AND/OR TO COMPLETE PUBLIC IMPROVEMENTS <br />WITHIN DEVELOPMENT DISTRICT NO.1. COMMISSIONER BENDER SECONDED THE <br />MOTION. THE MOTION CARRIED 6-0. <br /> <br />7. <br /> <br />Tax Increment District No. 17 Concept Approval for the David Decker Proiect <br /> <br />. <br /> <br />Executive Director Paul Steinman provided an overview of the TIF request. The <br />applicant is requesting $160,000 to assist in the development of a 25,000 square <br />foot multi-tenant industrial facility. The project is proposed to be outside of the <br />city sewer and water district in the southeast part of the community near <br />Highway 10. A second phase of the project could bring the total building size <br />up to 70,000 square feet. Total cost of Phase I of the project is estimated to be <br />