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City of Centerville <br />Council Meeting Minutes <br />October 9, 2019 <br /> <br />Council Member Koski stated that part of the costs of the developer are offset by the TIF <br />which include interest on a loan. Ms. Omdal stated that the $1.35 million of project costs <br />would be paid over time (20 years) subject to negotiation as planned, with interest. Council <br />Member Koski stated that TIF is very complicated and a TIF district is for a blighted or <br />redevelopment area. Ms. Omdal stated that this TIF District is solely for housing. <br /> <br />Administrator Statz stated that previously the City looked at establishing a TIF <br />Redevelopment District which had no requirements for affordable housing but did have <br />requirements for removal of blight. Since this project does not remove blight it would not <br />it would not qualify as a Redevelopment District. He stated that removal of the buildings <br />on the vacant lots was covered with CDBG funds several years prior. <br /> <br />Council Member Koski questioned if the developer were to default on the project, how it <br />would affect the TIF District and the City. Ms. Omdal stated if the project were built, the <br />developer went bankrupt, stops making property tax payments, no money would be <br />generated and they would be in default of their contact which then would be terminated. <br />At some point the City would receive the taxes on the property and would not be held <br />responsible for paying that developer on the $1.35 million. <br /> <br />Council Member Koski questioned if the developer when bankrupt could the project turn <br />into something different or was there a maximum number of affordable units. Ms. Omdal <br />stated that the developer is not proposing more than the 11 units unless the City were to <br />direct otherwise and typically we see those in studio and 1-bedroom apartments. Council <br />Member Koski stated that that is his concern. City Administrator stated that if there were <br />more than 11 units and if they chose to discount more they would not receive more from <br />the City. He stated that he did not feel that this would make a lot of sense. Council Member <br />Koski stated that he does not want to be stuck with something that was not intended and it <br />should be considered. He also questioned that over the 20 year period the City <br />portion/contribution would be $997,579, the County portion $617,692, the school’s portion <br />$624,479 and other taxing authorities’ portion $98,641 for a total of $2,338,391 captured <br />and given to the developer. Ms. Omdal stated that these are estimated captured taxes. <br /> <br />Administrator Statz clarified by stating the $1.35 million is the present value. Ms. Omdal <br />stated that if the Council finds that the project would go forward without TIF assistance <br />then those dollars would go to the City and respective taxing authorities. But if not going <br />forward without assistance then this is a projection of what would happen. Administrator <br />Statz stated that the largest question is whether the project would go forward without <br />assistance. Council Member Koski questioned how many other developers were interested <br />in the project. City Administrator Statz stated that he felt there were four (4) to begin with <br />and then two (2) that were very interested and Council chose Trident Development who <br />requested TIF and the other developer had not discussed TIF. Council Member Koski felt <br />it would be nice to have a developer that did not request TIF assistance. <br /> <br />Council Member Montain stated that he is not for TIF assistance and questioned whether <br />the 5% could be adjusted to offset taxes/services that will be utilized by these residents <br />over the 20 year period such as school needs of residents and public safety necessities. Ms. <br />Omdal stated that the 5% is to offset City administration and nothing else. She also stated <br />Page 4 of 16 <br /> <br /> <br />