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I I I Council Meeting Minutes December 19, 1995 Page 3 Council Business. continued Fulton noted that the original estimate discussed during the five-year planning process anticipated a 18 % increase. Council and staff have been successful in reducing that amount to 4 %. Staff has been working with Ramsey County regarding the 1995 property taxes for TIF #2, Village Center. The County collected 1995 taxes from the property value built on this site, however, the amount collected was general tax revenue as opposed to tax increment. This revenue should have been captured as tax increment. The County will correct the situation in 1996 by giving the City the 1995 and 1996 tax increments for the site. This total relates to $42,000 and would be allocated across all taxing jurisdictions. In our particular case, it would increase the levy a very small percentage. Larson verified this would be a one-time adjustment. Motion by Gunderman, seconded by Larson, to WAIVE THE READING AND ADOPT THE RESOLUTION APPROVING THE 1996 ANNUAL BUDGET, TAX LEVY, AND AUTHORIZING THE ISSUANCE OF AN EQUIPMENT CERTIFICA TE. 5 Ayes - 0 Nayes, Motion Carried. Council thanked staff for their work. Fulton commended Egan for her efforts. Community Development Director Kevin Locke presented a revised purchase agreement for the Dolle Property (TIP #15). Locke said the item was placed on the agenda with the hope that all documentation would be available, however, more substantive material is needed and staff proposes continuation to January 9, 1996. Motion by Gunderman, seconded by Samuelson, to CONTINUE THE CONSIDERA TION OF A REVISED PURCHASE AGREEMENT FOR THE DOLLE PROPERTY (TIF #15), D & T TRUCKING TO THE JANUARY 9, 1996, COUNCIL MEETING. 5 Ayes - 0 Nayes, Motion Carried. Locke presented the purchase agreement for the Brost Property (TIF #21). The property located at 721 Old Hwy 8 is within the Lakeview redevelopment area and TIF District #21. Acquisition is needed for completion of the City's redevelopment projects. The terms are: purchase price of $520,000 (equivalent to $2.40/s.f.); $40,000 down payment upon agreement execution; closing on or before March 1, 1996; and the property is in as is condition with no relocation expenses. An additional amendment states that if buyer has not provided notice of termination to seller prior to February 15, 1996; the buyer's contingency for environmental investigation shall be deemed waived. The amendment is acceptable to the sellers. At the most recent negotiations, the City offered $2.20/s.f. which reflects the 1993 appraisal. The estate countered with $2.50/s.f. which was rejected by the City. After negotiating, both parties agreed to $2.40/s.f. which is within 10% of the City's appraisal. It is not unusual for the City to adjust its proposal when the property is vacant and some demolition has been performed which then provides savings to help offset the additional 10%. Council Business 1996 Annual Budget and Levy Report 95-247 Resolution 95-113 D & T Trucking Agreement Report 95-248 Brost Estate Report 95-249