2020-09-16 EDA Meeting Minutes - Approved

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City of Centerville EDA Minutes September 16, 2020 Motion by President Hanzal, seconded by Commissioner Giovinazzo, to request a preliminary budget for 2021 of $29, 200.00 from the City Council. A roll call vote was taken. All in favor. Motion carried. 3. Tax Increment Financing (TIF) Discussion President Hanzal asked Executive Director Statz for an explanation of Tax Increment Financing (TIF) and how that money is used to fund a building project. Executive Director Statz explained that “increment” is the difference between taxes paid by the new building verses taxes paid by whatever was there before. For example, a vacant lot pays in approximately $4,000 per year. If it is estimated that a new building on that lot might generate $100,000, then the “increment” is $96,000. The increment is what is eligible to be paid back to the tax paying entity. The tax payer will pay $100,000 in taxes, but receives the $96,000 back. The money is tax money, but if not for the incentive the project would not happen. The City needs to weigh the differences: is it more advantageous to create a TIF district even though they would be refunding the taxes for the life of the TIF district, or are they better off not offering incentives and discovering whether the developer will build without it. There are also different kinds of TIF and different TIF arrangements. For example, the TIF district which was proposed for Block 7 was a “pay as you go” arrangement that states that if the city does not collect enough taxes to meet the TIF obligation then they don’t have to pay the obligation. Also if a TIF district is 16 years (as was proposed with Block 7) and it is paid off in 13 years, then the city does not have to pay the additional three years. VI. NEW BUSINESS 1. CenterStage – Review Program Progress to Date a. Newspaper Ad Package b. Main Street Marketers Service Package Executive Director Statz stated that he had contacted Quad Community Press and Main Street Marketers to create one-year service packages for 2021 so that the EDA could use CARES Act funds to pay for those programs. Each vendor has given him a quote and he would like the EDA to approve them. Motion by Commissioner Giovinazzo, seconded by Commissioner Weatherhead to approve the $3,000.00 proposal from Main Street Marketers and the $9,249. 00 proposal from Quad Area Press from the EDA general fund, with potential reimbursement from the CARES Act. A roll call vote was taken. All in favor. Motion carried. 2. Release of remaining 2020 funds Page 4 of 5