2020-05-13 CC Packet - Laserfiche WebLink

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City of Centerville Council Meeting Minutes March 11, 2020 Mr. Brian Beert, 1829 Houle Circle, stated that he has lived in Centerville since 1993. Asked what is the population of Centerville? Administrator Statz stated about 4,000. He questioned about the TIF 80 and 20 percent is that a lock at the 20 percent or can they go above. Administrator Statz stated that there would be no incentive to go above 20 percent. This is different than section 8 housing and is not a voucher type program. They have to demonstrate that they are offering this in these apartment at a discounted rate. A one bedroom apartment is about $1600 a month the affordable rate would be about $900 a month. The developer would have to document to the state because the state runs the TIF program that they offer those at a reduced rate. Mr. Beert asked if the tax payer is paying the difference. Administrator Statz replied the developer is paying the difference. Mr. Beert asked if they checked with other cities to see if they have done TIF and how their reaction been to it. Administrator Statz stated that City of Lexington did a project with TIF and they have other developments in town that are not using TIF. He stated roughly half of the apartment building in the past 10 years in this area have used TIF. Mayor Paar add that the City of Lino also stated that Centerville does not have any active TIF district as this time. The last TIF district was Northern Forest Products. Mr. Beert received an email from Rep. Linda Runbeck mentioning something about blight and do we have to prove our blight? Administrator Statz stated that there are multiple types of TIF districts and one type is a redevelopment TIF district. This was the first type of TIF district that the City looked into and this one is tied to blight. Administrator Statz stated this is a blank lot and does not require tearing down any structures, so we were not eligible for that program. Another alternative is this housing district which required the 20 percent affordable rent and does not require elimination of blight. Mr. Beert asked the $10 million is what was proposed from the developer and they are short $1.34 million is that why they are looking at TIF? Administrator Statz answered correct. Mr. considering a smaller development. Mayor Paar stated when Trident originally came to the City, Council asked if they could do without TIF. He stated that Council agreed that if would be the best. He explained if they go to a bank to get the rest of the capital and there a TIF that proposed for $1.34 million is guarantee money they are able to get the project going and that will fix the gap. Mayor Paar stated that the talked about giving them the land and waiving SAC and WAC fees. The park dedication fund is negative at the present time, so we would not give that away. Council looked all the different ways and Finance Direct put together a spread sheet, it showed that TIF would be the best way to do this project. Mayor Paar stated that there are smaller project that could be done. They had townhomes originally planned for the area surrounding the core of downtown when Beard Group came and one of the reason that fell through was because the townhome market went down. He stated the study that Trident did showed apartments are in demand for seniors, single people, and millennials apparently love high end apartments. We went with what they proposed. The TIF was the gap that they needed to make the project work. Mayor Paar stated that council did not try to hide this project. They have had several meetings regarding this project. He stated that Council is Page 5 of 18