Print VersionStay Informed
Minutes/Finance/Development Standby Committee
Wednesday, December 9, 2009 – 4:00 p.m.
2
The Finance/Development Standby Committee met on Wednesday, December 9, 2009 at 4:00 p.m. in Room A101 in City Hall. Present at roll call were: Christensen (via phone), Glassheim, McNamara, Gershman.

The meeting was called to order at 4:00p.m. Agenda was suspended to hear Item 2 first.

2. Modification to Corporate Center Taxable Industrial Development Revenue Note, Series 1999.

Hoover stated that they have worked with Frandsen Bank and Trust and have arrived at a deal which will reduce the interest rate for the next 5 years and then allow for renegotiation of the note again for the remaining 3 years and will provide significant saving. He added that there will be a request coming to the committee later to tap into some of those savings to borrow internally for necessary maintenance on buildings.

Motion by Christensen, Second by Glassheim, to approve the modification to the Corporate Center Taxable Industrial Development Revenue Note, Series 1999. Aye: All. Motion carried.

1. Matter of parameters for tax increment financing.

Carsen stated that City Council had wanted to review the draft and decide if a modification of the tax increment financing program is in order and expressed a desire for an aggressive exemption program to be in effect for a set period of time. He reviewed main factors of the current program and explained that it does allow for use on most projects with the exception of retail and a few other restrictions. The group discussed that this came up as a result of an application which did not really fit the current policy and whether it was appropriate to review at this time.

The group discussed the criteria related to goods and services outside the area and that it is sometimes hard to review monitor, but possibly could require a report submitted to committee that could be reviewed as part of the application process. McNamara commented that not interested in providing incentives for development in prime areas of the City, but more for use in areas that need redevelopment or development.

The group discussed that it would be important that any changes in the policy keep the playing field even for all and that the intent would be to encourage growth anywhere in the next three years. Consensus was also to set as a sliding scale like 80, 60, 40 so that some new taxes start coming from the property right away. The group discussed whether there should be something included that could be increased benefit for development in certain target areas such as downtown or if perhaps it could be changed to allow for use to rehab some older commercial that is already in place for instance along South Washington, turn some vacant retail into potential office or other space.

Carsen stated that there is already in existence a program for new commercial that can exempt for 5 years and new or expanded business could be retail but, we’ve always exempted and done only primary sector. Christensen stated that he would rather see a new policy developed that could be in effect for next 3 years. Gershman stated that he would also not be in favor of including retail in the exemption. The group discussed that there is already a number of vacant retail sites in the community.

Carsen stated that there are remodeling and addition exemptions for residential or commercial and retail would be covered under that as well. He added that lately are hearing more complaints from some large major retail about values and that sales are flat or reduced and has held down rates as much as possible. He continued that can’t do this for too long, but also if see retail values falling, may see some retail start to pull out of Grand Forks. Christensen stated that other areas are also seeing reduced sales and we have been somewhat insulated, but if we can find a reason to help out this industry we should.

The group discussed the percents that should be included in the policy, that it should encompass the whole community, and how timing for the exemption should be applied to the property. Carsen stated that he would work with Howard Swanson on a revised document and bring forward to COW and Council.

3. Downtown Parking Assessment Appeals.

Hoover stated that he has received one appeal of downtown parking assessments from Caulfield Studios which needs to be heard and acted on prior to December 31, 2009. After reviewing the details, staff recommendation is to credit them for 10 spaces as per their request, but to deny the square footage argument that they include in their appeal. Hoover added that the administration of the downtown parking assessments program as it currently exists is very complicated and difficult and suggests that committee act on this appeal, but then also look to have staff bring back a new policy and wrap up no later than March.

Motion by Glassheim, second by Christensen, to recommend recognizing their provision of 10 spaces and to leave the square footage as originally set, per staff recommendation.

4. Redevelopment of Civic Auditorium Site.

Hoover stated that MetroPlains will come back in with a project for the parking lot site, and need control of the site by February 20, 2010 so can submit their application to the State and can use HOME funds as a source for this project. On the Dakota Commercial development, the State is now requiring that when the application is submitted tenants of the retail area need to be determined. They will now use that as office space for their offices and fund with private funding for that area and then remaining development will be all apartments.

Also provided was an update on the vacant lot owned by the Townhouse. Our appraisal was $3 per square foot and the bank appraisal was $5 per square foot are in and have made an offer at $4 per square foot and owner is talking with his bank on the offer but have not received an answer back at this time. Hoover would like to have authorization for up to $130,000 to acquire this property using unrestricted funds.

Motion by Christensen, Second by McNamara to authorize up to $130,000 for acquisition of the vacant area. Aye: All. Motion carried.

Respectfully submitted,



Sherie Lundmark
Admin Spec Sr