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CITY COUNCIL WORKSESSION- APRIL 23, 2007 <br /> Ms. Kvilvang stated a future discussion point was whether or not to have a right of reverter. <br /> Since the MDA would lay out the schedule of activities,the City should have remedies in • <br /> place should the developer fail to follow through. Remedies could be a right of reverter or <br /> financial consequences. A right of reverter would allow for the land to revert back to the <br /> City should certain elements fail to be completed. Financial consequences help ensure that <br /> the developer's interest would be for the long term by holding back developer fees until the <br /> start of the next phase. The most common remedy was to revoke the developer's right to <br /> work on a particular piece of property and another party would then be found to complete <br /> the job. <br /> Land Use Provisions <br /> The City could require, by contract, the kind of uses it wanted on the property. The uses <br /> could include things that would be required or permitted and provisions for future <br /> revisions. <br /> Design Standard <br /> The City would set the design standard up front that the developer would have to meet. <br /> The only way the developer or subsequent developers could deviate from the design <br /> standard would be if they came back to the City. <br /> Public/Private Infrastructure <br /> This would be where financing needed to be figured out and would usually include some <br /> type of bond financing. It would be important to get bonding on a tax exempt basis. Doing • <br /> so would be cheaper for the City and those paying the assessment. Mr. Bubul stated that <br /> there were some federal rules that could affect the City's eligibility. <br /> The MDA would include provisions that allow the city to review the developers proposed <br /> financing. Ms. Kvilvang stated that typically the developer would release their financial <br /> information at their office, Elhers and Associates, or the attorney's office. The review <br /> would be done with as much confidentially as possible. A summary would then be drafted <br /> stating the condition of the developer's finances and whether they were able to meet the <br /> needs of the city. <br /> If there was a need for Tax Increment Financing(TIF) or abatement, it would also be in this <br /> contract. Pay-as-you go tax increment could be used as a form of subsidizing the cost of <br /> the infrastructure where the developers would pay for some of the cost and the City would <br /> reimburse them from tax increment over time. <br /> Councilmember Grant asked if it was possible to assess and TIF the same area. Mr. Bubal <br /> stated that assessment and TIF could not be used to pay for the same thing but,if it was <br /> determined that having the developer pay the assessment would make it unfeasible to <br /> market that property, TIF could be used to buy down the assessment. <br /> Mayor Harpstead asked if the same was true for tax abatement. Ms. Kvilvang stated that it <br /> was not permitted to have abatement in a TIF district, although a parcel could be taken out • <br /> of the TIF district and abated. <br /> 2 <br />