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<br />I <br /> <br />I <br /> <br />I <br /> <br />City of New Brighton <br />July 23, 1981 <br /> <br />The Director of Community Development reviewed the basics <br />regarding conditions of tax increments and the estimated <br />impacts on the school district, County, and City. It was <br />estimated that the impacts on the various taxing jurisdictions <br />would be minor and that the increases in property taxes <br />paid by the proposed development would greatly exceed the <br />taxes currently paid on property included in phase I. <br /> <br />Mr. Dick Aplikowski, Lakeside Mobile Home Park, questioned <br />what guarantees the City has that development will occur <br />as proposed. <br /> <br />Staff responded that Kraus-Anderson, Inc., must guarantee <br />buildings will proceed as proposed prior to City Tax Increment <br />Bonding. <br /> <br />Mr. Paul Reiling stated that with the information provided <br />he favored the project. <br /> <br />Mr. Jerome Sauer, 466 10th Avenue NW, questioned what percent <br />interest the City would have to pay if bonds occur. <br /> <br />The fiscal consultant responded his best estimate to be 10%. <br /> <br />Councilmember Steve Schmidt requested information regarding <br />reserve pool using tax increment bonds as a pledge for <br />industrial revenue bonds. <br /> <br />The Director of Community Development stated that a reserve <br />pool system has been recently discussed with various bond <br />firms and bond counsels and it was the initial feeling that <br />if a reserve could be used it could be a good potential tool <br />for not only the City and Phase I development, but also for <br />the potential small investor or existing downtown businessmen <br />as well. <br /> <br />Motion by Blomquist, seconded by Schmidt to: <br /> <br />1. Indicate support and preliminary approval of the Downtown <br />Development Plan. <br />2. Indicate support and preliminary approval of Tax Increment <br />project and Plan, if used prudently. <br />3. Direct staff to prepare resolutions for consideration of <br />approval of the Development Plan and Tax Increment Plan. <br />4. Direct staff to consider alternatives for Tax Increment <br />Financing including the reserve pool concept for <br />Industrial Revenue Bonds. <br />5. Continue the public hearing on the Development Plan <br />and Tax Increment Plan to August 11, 1981 at 8:00 p.m. <br /> <br />4 ayes - 0 nayes - motion carried <br /> <br />-2- <br />