2019-09-16 EDA Minutes (signed) - Laserfiche WebLink

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REDA Meeting Minutes—Monday,September 16,2019 Page 2 exploitation by this developer. The developer has not been charged or convicted of a crime and stands by their reputation for constructing high quality multi-family and office development. She explained staff has worked with EDA Attorney Ingram to address those concerns by incorporating language that is in section 4.4 of the contract. In addition to that language, other language has been added to section 9.1 regarding the developer and if it is found guilty of any crime it would be an understanding of default under the contractual agreement with them. That means the EDA would have the right to withhold any TIF payments at that time. She noted there is no financial assistance upfront and is a pay as you go note TIF. Attorney Ingram explained EDA staff has been extremely responsive to the concerns that have been raised and has been very proactive about approaching her with requests for language that can safeguard that the EDA is protected in case there is any evidence of wage theft on this project. President Roe asked for clarification on the assistance using TIF. He asked if it was correct to describe the source of the funding for the TIF assistance provided as coming only from taxes paid by properties within the TIF district, and no other city taxpayers, and that the assistance was only provided on a 'pay-as-you go' basis using the collected increment each year to reimburse allowable development expenses Ms. Kelsey explained that was correct. She noted every year when property taxes are paid twice a year there is a portion that comes back to the city and that is the TIF assistance. Member Groff thought if there were any issues during construction or because of wage theft or other abuses, because the TIF is not paid up front, that would come up before that money is paid out. Ms. Kelsey indicated that was right and would be a reason for default and for the city to withhold any payment. Mr. Nick Walton, part owner of Reuter Walton Construction, Inc., made a short presentation of the history of the company and the current proposed project. Mr. Walton explained regarding TIF, it is not only taxes generated within the District, it is taxes, literally, that are generated by the project's specific building. The project has to create the tax before any TIF is received. He indicated since the project is fully approved, tonight would typically be more of a formality in the TIF process, especially since the due diligence process to approve TIF has already occurred. His company was told that the Carpenter Union was at the city and trying to enter this conversation at the eleventh hour and, in their words "kill the deal", which is why he was at the meeting speaking. Walton noted that until now, the city has been interacting with Kyle