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HomeMy WebLinkAbout1995-11-01 TIF Commission MinutesCITY OF RIVERSIDE TAX INCREMENT FINANCING COMMISSION NOVEMBER 1, 1995 Members present: Jimmie Karr, Ed Young, Jim Davis, Betty Burch, Tim Weeks, Jim Wedua, Al Tunis, Ron Super, and Diza Eskridge. Also present: Don Witt, Dick Smith, Paul Pien, Dan Peak, Roxsen Koch, Richard King, and Ann Daniels. The meeting was called to order by the Chairman, Ron Super. Roll call was answered. A motion was made by Jimmie Karr, seconded by Jim Davis, to approve the Minutes from the October 27 meeting as printed. Motion carried unanimously. Mayor Betty Burch, Treasurer, reported she had received two checks totalling $20,000 from the developer, per the funding agreement. She stated a checking account would be opened at the Farmers' Exchange Bank of Riverside. A motion was made by Diza Eskridge, seconded by Jimmie Karr, that a bill submitted by Witt & Hicklin, in the amount of $4,088.49, for legal services provided, be approved for payment. The vote was unanimous. Tim Weeks distributed a new set of questions presented by the School Board to the developer for clarification. Don Witt introduced Paul Pien, Vice President and General Counsel for the Trillium Corporation. Mr. Pien stated his company was in the process of answering the questions submitted by the School Board. Dick Smith, attorney with Craft, Fridkin, and Rhyne, was introduced by Don Witt. Mr. Smith told of his involvement, through his law firm, as legal counsel for the Kansas City Tax Increment Financing Commission. He will be advising the Riverside TIF Commission. During his comments, Mr. Smith stated he had only recently received the developer's plan and had several questions following his cursory review. Some of these issues concerned: the description of the area as blighted when Argosy is already being developed; the involvement of Argosy in this plan; proof that the property owners will be benefitted by the plan; proof that the development will not occur unless the plan is adopted; and to address why this property will not be developed while other property (Argosy) is already being developed with no levee or infrastructure. Mr. Smith stated that, from his cursory review, the plan was not complete and there would need to be many questions answered before he could make a recommendation to the Commission. Discussion was held concerning the time of the Hearing (November 13) and the necessity of having all the negotiations in place, as well as the development agreement negotiations underway, prior to that date. It was stated that a completed plan must be submitted to the public for review but that the plan could be amended during the Public Hearing process. The boundaries cannot be amended. Mr. King stated he would like to hear the questions and concerns of the Commission members. He stated he had heard some discussion that the School District might like to exempt levy increases from the TIF since they were preparing to vote on a levy increase. Trillium is open to negotiation on this issue. He further stated he had heard from some that the levee should be the first priority and that could be negotiated, also. The question was raised as to what benefit other properties might be receiving from the plan, when Argosy would be receiving a new entrance road to their property. Roxsen Koch stated the actual requirement is that the properties, when they are developed, have to benefit from the redevelopment project improvements. That would include the Interchange from 635 and the levee which would benefit every property in the area. Suggestion was made that the developer might need to bring cash to the project for serious consideration to continue. Mr. King stated they were not opposed to discussing this issue but wished to have a suggested amount to consider for negotiations. Other discussion centered around the levee and actual funding commitment from Congress for it; granting of right of way and easements, as well as land, from Trillium Corporation to construct the levee; the length of time required to pay back the bonds; and the possibility of the City having Mr. Smith's law firm compute the figures to ensure their accuracy. The question was also asked about the City's ultimate responsibility for repayment of the bonds if the developer should default. The answer to that question was that the City would have NO liability and is not at risk. It was suggested that Argosy should be involved and possibly offer a commitment to the project. Mayor Burch stated they had been contacted and would probably have a representative at the next meeting. In response to the questions, "Could the City build the levee without the Developer?", the answer given was yes. A motion was made for adjournment by Jimmie Karr, seconded by Mayor Burch. Motion carried unanimously. Ann Daniels, Secretary