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HomeMy WebLinkAbout2002-12-19 Council Minutes CITY OF CORCORAN TAX INCREMENT FINANCE HEARING DECEMBER 19, 2002 H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2002 - Need to PDF\12.19.02 TIF.doc Mayor Guenthner called the Tax Increment Finance Hearing to order at 7:00 p.m. on December 19, 2002. Present were Councilors Bucher, Gageby, Gmach, Guenthner and Thomas. Administrator Vergin and Nick Skarich with Northland Securities were also present. Pledge of Allegiance was said. MOTION by Bucher, seconded by Thomas to approve the Agenda as presented. Voting Aye: Bucher, Gageby, Gmach, Guenthner and Thomas. Nick Skarich provided an overview of the purpose for the modification to the existing TIF Plan which was implemented in the 1980’s. The modifications allow the city to establish a budget for future expenditures. This however, does not create a commitment by the city to pursue those projects. It will merely allow the city another financing tool if those projects are pursued. Mr. Skarich further noted that he has had discussions with the city over the past fours years addressing the need to make modifications. Mayor Guenthner opened the hearing for public comment. Bill Halverstadt, Olde Sturbridge Road – Stressed a concern that the document was not made available to the public in a timely manner, and was difficult for some to download from the email. The modification indicates a budget of 18 million dollars, where does the City intend to get that money? How does the City expect to spend those monies? This is being dropped on the citizens with out any realization, very little public awareness. Why hasn’t information been more prevalent? Asked that the City put this to a referendum. Councilors Gmach and Gageby informed the audience that this to better define the purpose of the tax increment funds. Halverstadt questioned why there is a deviation from the beginning TIF plan. Skarich reiterated that the City is under no obligation by making this amendment to the plan; it is a budget that the City can work within. Further explained the purpose and manner in which Tax Increment works. How tax monies are captured to cover public costs. Councilor Gmach pointed out how the CSAH 19 road improvement project could be paid for by utilizing TIF funds. That without the TIF monies the City would need to incur bonded debt which would be spread over the entire tax base, all residents would pay for the project. With the TIF monies the City would not need to bond and therefore no burden to the tax payers. Halverstadt further questioned the budget and the individual components within that budget. Skarich replied that the budget is a frame work within the plan. TIF reduces the need for public exposure. The City is not capturing more TIF monies with this modification, only identifying other means by which the funds can be utilized for. Called to Order Roll Call Pledge of Allegiance Agenda Approval Overview of TIF Public Hearing Opened Public Comments CITY OF CORCORAN TAX INCREMENT FINANCE HEARING DECEMBER 19, 2002 H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2002 - Need to PDF\12.19.02 TIF.doc Halverstadt commented that business development does not reduce costs to residents, it increases costs. Gary Scharber, Strehler Road – Concerned with sewer and water helping future residents not current residents. There are alternatives to sewer that are available. Pete Frank, Horseshoe Trail – Had questions about what changes were being made to the document. Identified that the underlined and bolded were the proposed changes. Bill Reiss, Horseshoe Trail – Questioned where the existing TIF monies came from. Skarich explained how TIF monies are captured. The City has the ability to capture and spend 2.4 million. There is no commitment by the City to make those expenditures. The 18 million is a summary of potential projects. Jim Tilbury, Horseshoe Trail – Requested clarification of how long the document is good for. Skarich replied that the TIF Plan is good through 2013. At that time it is required that the TIF district be decertified. The City can make additional changes if they so desire, some will require the hearing process, like this one, and some changes are administrative. Administrative changes would be those identified within the budget, however perhaps the amount of funds being expended may be different that identified in the Plan. Mayor Guenthner reiterated that the matter before the council this evening is not to spend the money, but to take the technical steps necessary to make changes to allow the use of TIF monies. Any processes required of the council for all future development projects will be followed appropriately as the council has a fiduciary responsibility. Chuck Lymangood, County Road 116 – That as a planning commission member the Commission had reviewed the document and favorably forwarded to the council for their consideration. This document has been available for several weeks. Further noted that it is important for the City to update the Plan and commends them for reviewing it and moving forward. Halverstadt – Reiterated his desire for spending of monies to go before the public. MOTION by Gageby, seconded by Bucher to close the hearing for public comments. Voting Aye: Bucher, Gageby, Gmach, Guenthner and Thomas. Councilor Bucher questioned the absence of the south half of Section 32 in the document. Skarich responded that the State uses the map as the official document for where TIF monies are captured and expended. Public Hearing Closed CITY OF CORCORAN TAX INCREMENT FINANCE HEARING DECEMBER 19, 2002 H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2002 - Need to PDF\12.19.02 TIF.doc MOTION by Gmach, seconded by Thomas to approve Resolution No. 2002-89, approving the modifications to the TIF Plan, and further that an amendment be made to the narrative so that it will correspond with the official TIF boundary map. Discussion on Motion – There are thresholds and criteria in place that dictate the amount of debt that a City may incur. This process preserves the right of the City to utilize the TIF funds for projects identified in the Plan, but this does not commit the City to spending those funds. Dissemination of material is an issue for the City to address. There appears to be confusion by some regarding the process, these are projects that can be undertaken in the next 20 years, these are things that could create burden on the taxpayers without TIF funding. The modification is being made for the benefit of the citizens of Corcoran. The decision before the council is an administrative update to the Plan. VOTE ON MOTION – Voting Aye: Bucher, Gageby, Gmach, Guenthner and Thomas. (Motion Carried) Mayor Guenthner announced that there would be cake and refreshments after the meeting to recognize Councilor Gmach for his years of service and invited everyone to stay and participate. MOTION by Gmach, seconded by Thomas to adjourn, 8:35 p.m. Voting Aye: Bucher, Gageby, Gmach, Guenthner and Thomas. ____________________________ Susan Vergin, City Administrator Approval of Resolution No. 2002-89 Announcement Adjournment