CC_Minutes_2005_0620 - Laserfiche WebLink

Home

City Council Regular Meeting - 06/20/05 Minutes - Page 16 Mr. Casserly noted that 25 year districts had been in existence for some time and were created due to legislative class rate changes on property several years ago, which had taken 40% of potential redevelopment funding, thus lengthening the time required to achieve successful projects. Councilmember Maschka noted that historically, the City of Roseville has decertified districts before their legal limit in years. Mr. Casserly concurred, and noted that this district could be less than 25 years, which was the limit, but in recognition of tax compression concerns, his analysis used a more conservative approach. Councilmember Kough opined that property owners and developers should be responsible for cleaning up their own properties, rather than the City, specifically when the developers had money to do so, and couldn't meet the "but for" test; and represented code issues that weren't enforced. Mayor Klausing requested Mr. Casserly to discuss polluted land, "but for" tests, and to address Councilmember Kough's concerns. Mr. Casserly addressed incentives and motivation for commercial/industrial property users to clean up properties, if not considered health hazards; the different levels of clean up; converting properties to higher and/or different uses; increased valuation of land from approximately $30 Million to approximately $220 - $250 Million due to changing uses and the significance and advantages to the community. Mr. Casserly further detailed taxes generated and uses of tax increments; percentages of taxes actually available for project expenses, estimated at 54%; and taxes of 6 to 7% available and used for environmental remediation costs through a proposed Hazardous Substance Subdistrict. Councilmember Ihlan questioned that percentage or rate of return the developer would anticipate from this public investment, or