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City Council Study Session 1Vlonday, August 20, 2007 Page 25 Councilmember Roe opined that it made sense to have a policy in place, to determine a threshold level of land size, acreage, number of people per square foot, or what land use actions would trigger a PI- LOT. Councilmember Roe further opined his preference to have such a policy in place before attempting to negotiate its use; and to have the ability to appropriately apply such a policy in the future for applicable situations. Councilmember Ihlan opined that this was an opportunity to negotiate a unique agreement with a unique institution; with the campus utiliz- ing city services ultimately paid for by other taxpayers and impacting the City's tax base by removing non-exempt properties from the tax roll upon purchase by the non-profit. Councilmember Ihlan further opined that if it was necessary to establish a policy first, the City would loose their ability to negotiate in this situation. Mr. Darrow clarified that the City, due to the development review pe- riod clock stopping in July for negative declaration on an EAW issue, the City was currently 3 0 days into their first 60 day review extension, with another 60 day extension available, at Council direction. Mayor Klausing opined that, notwithstanding the City Attorney's opinion, his "gut-level reaction was that the suggested action didn't pass the smell test." Mayor wlausing further opined that the City had the ability to initiate a PILOT program in the past for Northwestern College and/or other non-profits, but the timing of this proposal was immediately following other attempts to prevent expansion of the col- lege. Mayor Klausing advised that it was his understanding that a pending PUD Agreement would specify and condition costs and fu- ture mitigation issues. Mayor Klausing questioned the Minnesota Constitution and status of exempt organizations and protection provi- sions. Mayor Klausing recognized the benefits to the community by having Northwestern College as a part of the con:lmunity; and was only supportive of a voluntary PILOT program. Mayor Klausing con- cluded by opining that, from his perspective, the PUD needed to stand or fall on its own merits; and advised that he would be willing to have a future discussion on implementing a policy related to a PILOT pro- gram.