09-10-1984 Council Packet - Laserfiche WebLink

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MINUTES OF THE REGULAR COUNCIL MEETING HELL) AUGUST 27, 1984. PAGE 13 TAX INCREMENT FINANCING Arlin stated that tax increment financing originally was used for the acquisition of land. Arlin stated that tax increment financing does not have to be used that way. Arlin stated that the City needs a cohesive plan. Arlin stated that the City may want to construct new roads, do landscaping, lighting, curb cuts, parking, etc. Arlin stated that if the City wants new store fronts and encourage the sprucing up of their buildings, the City is talking about private property and trying to encourage the changing of private property. Arlin stated that legislation allows for commercial rehabilitation loans in which you can use tax increment financing, write down the interest on loans up to $200,000 for rehabilitation purposes. Arlin stated that included in the loans could he bring the building up to code. Arlin stated that if the City is going to encourage people to spruce up their properties, the best way to do that is to assist them through tax increment financing. Steve Emerson stated that the City would borrow money either through a bond program, and use those dollars for tax increment improvements. Council member Grabek stated that the citizens are going to say, "you the City are going to go through this financial strategy to improve the properties in Navarre, and all our taxes are going to increase and we are going to pay for the betterment for- the businessment in Navarre". Grabek stated that the citizens are not going to understand and how should the City answer that. Arlin stated that the City should n—ver put any property into tax increment district unless the City can answer this "Would that development '-lave occured without the City's assistance?" Arlin stated that the City has to encourage the people to participate. Arlin stated that commercial rehab program is only a small portion of tax increment financing. Arlin stated that the City is required by law to do: 1. Have a development program. 2. Tax increment financing plan. Dick Keaveny stated that he would be in favor of this type of plan. Keaveny stated that he has wanted to do something with his buildings for years, but hasn't had the money. Keaveny stated that the commercial rehab is part of the tax increment financing. One woman stated that Navarre is not all commercial. but is interrupted by residential units too.