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I I I Council Meeting Minutes September 9, 1986 Council Business, continued Schmidt believed no one doubts that alcohol and other chemicals are a problem and feels their mission is a real undertaking and that the concept is most commendable; stated the city has made contributions to the New Brighton Historical Society, Stockyard Days, and other local organizationd; in terms of policy, he questioned whether or not the purpose of the organization is compatible with the city's policies and whether or not we should, in fact, become involved. In response to Fruth's inquiry, Benke stated the next step would be for a representative of the Committee to contact Sinda and set up a meeting with staff and Brandt and begin formulating questions and the appropriate answers to determine whether or not the City would become involved in the St. Anthony Chemical Awareness Committee. Locke reviewed the seven steps in the staff report concerning authorization to prepare a development agreement and to set a Tax Increment Finance public hearing for Harstad Companies's office building; and stated Mark Houge, Harstad Companies, was present to answer any questions. In response to Brandt's inquiry, Locke stated the $225 per month payment to the city would be made over the duration of the Tax Increment District, or ten years. Schmidt stated he finds that the question of offering a subsidy to the developer, as we have provided in other cases, is certain- ly unique in this case; the cross-over index would indicate that the community-at-large that collects the taxes is likely to generate an increase of $.5 million in taxes for the $3 million project versus the $1.5 million project; and believed, of even greater significance, is the difference of quality between the three-story versus a two-story building. Schmidt noted the subsidy would be recouped at the 16-year level and that the ultimate tax benefit is about $.5 million in year 25. Gunderman asked about the guarantee that the three-story will be in accordance with the previous discussions, Locke stated that all approvals will be tied to what was previously submitted to council; if Harstad Companies does anything differently, or pro- poses to do anything differently, we would deny them a building permit; and indicated that no changes had been made on the three- story building since the last council meeting. . Williams asked if the acquisition of the church's property had been finalized; Houge indicated the church has offered to sell and Harstad Companies has agreed to buy, noting the purchase process will not hold up construction. Page Six Harstad Companies Three-Story: Development Docu- ments, Set Public Hrg. 10/14/86 (Es- tablish TIF #12 and Expand Development Dist. #1) Report 86-207 Extension of LP-192 and VN-244 Report 86-208 Continue LP-200 until 12/23/86 Report 86-209