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A special meeting of the Common Council was held at City Hall in the City of Black River Falls on August 22, 2007 at 6:00 P.M. Alderpersons Rahmlow, Olson, Austin, Onstad, Johnson, Eddy and Mathews were present. Alderperson Danielson was absent. Mayor Hunter presided.
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Charlie Jones, engineer with Cedar Corporation, reviewed Tax Incremental Financing (TIF) as a tool for assisting with development in the City. Black River Development has requested that the City pursue a mixed-use TIF for the former Pines property. A mixed-use TIF needs two of the three following uses; commercial, residential and industrial. The developers are proposing commercial and residential only. The TIF district would fund the infrastructure to develop the property (the exact dollar amount would be part of a developer’s agreement approved prior to final TIF action) and the taxes on the ensuing development would pay off the infrastructure improvement over the life of the TIF – up to a maximum of 20 years. The proposed developer, Rock Valley Holding Company, Inc. has agreed to provide a letter of credit to guarantee the infrastructure improvements would be paid off if the taxes on the development were inadequate to do so.
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Sean Lentz, Ehlers and Associates, the City’s financial consultants, reviewed the City’s current borrowing capacity and tax increment forecast based on estimated infrastructure costs of $1,600,000.00 and development of $7,000,000.00 equalized value over a two-year period beginning in 2008.
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Mayor Hunter advised the Council that he would be requesting the recommendation of the City’s Development Advisory Board on this matter. They will review the development and financing agreements between the City and developer prior to presentation to the City Council.
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It was moved by Alderperson Olson, seconded by Alderperson Austin to enter into the Agreement of Understanding between Rock Valley Holding Company, Inc. and the City of Black River Falls as presented. The City agrees to negotiate in good faith with Rock Valley for a development agreement and to take all action necessary to create a multi-use Tax Incremental District for the property. Rock Valley agrees to provide an appropriate letter of credit. Further, Cedar Corp. will be contracted to provide professional design services for creation of proposed TIF District #5, a mixed-use district, at a cost not to exceed $5,000.00. Motion carried.
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It was moved by Alderperson Eddy, seconded by Alderperson Mathews to adjourn. Motion carried.
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William Arndt,
City Clerk
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