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<br />page four <br />Water and TIF Assessment Hearings <br />September 22, 1987 <br /> <br />to payoff the bond. Ms. Drude advised that it is required by <br />Minnesota State Statute that 5% extra be added to bring the per <br />year amount to $24,856.00. The 18 building permits now possible <br />for capture in the proposed TIF would generate approximately <br />$17,000.00 per year. Thus, 8-9 additional building permits would <br />be needed to make the required yearly payment. There are 46 lots <br />in the Center Oaks II project. <br /> <br />Ms. Drucie also noted that a Temporary Improvement Bond is also a <br />possibility. The advantages: 1.) prior to 1990 the City would <br />be able to see the number of districts possible and how <br />development is moving, and 2.) it buys time. Disadvantages: 1.) <br />costs to issue bonds are paid twice, and 2.) can not predict the <br />bond market in 3 years to determine interest rates. <br /> <br />Council member Wilharber noted that he felt that the City should <br />take advantage of the proposed TIF and water system now. He <br />feels the water system is a good start for the future of the <br />development of the City. Wilharberrs major concern is paying for <br />the project and he is willing to bet that the City will get the <br />eight needed building permits from Center Oaks II in the near <br />future. <br /> <br />Council member Laska expressed concern regarding the possibility <br />of stale water because all of the homes may not sell. <br /> <br />Mayor LrAllier advised that if the City does not take advantage <br />of the current situation it may have lost something that it can <br />not recuperate. <br /> <br />City Attorney noted that he is <br />cautioned that there are never any <br />exist with expansion. <br /> <br />for growth of the City, but <br />guarantees and that risks do <br /> <br />City Attorney recommended that if current residents petition to <br />hook up to the proposed water system, that the City use lateral <br />charges in addition to the proposed $2,500.00 hook up charge. <br /> <br />City Attorney recommended that the City set an assessment policy <br />regarding water. To be determined: <br />- Time (example: five year assessment for <br />developments). <br />- Security needed (example: 35% of the assessment for <br />developments). <br />- Conditions (example: payment at time of certification of <br />occupancy). <br /> <br />City Attorney advised that it would not be feasible to order the <br />water project until security or a final plat from Centerville <br />Heights is approved. <br />