02-11-08 Community and Economic Development

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Community and Economic Development Committee February 11, 2008 Page 6 Council President Rouse voice concern over provisions in the current version of HB 1001 which treat long-term residents of the city differently than new persons with regard to mortgage exemptions, homestead credits, etc. Mayor Luecke noted that the Council has already implemented protections in the memorandum of agreement (MOA) with regard to the current circuit breaker language. Council Member Oliver Davis stated that it might be beneficial to be briefed by State Senator John Broden. Council Member White noted that she would like additional time to address this topic. She hoped that the Council and the Administration could "dig deeper to find out the true impact of the proposed state law". She hoped that no proposed development projects would be negatively impacted. Dr. Varner noted that he has been a supporter of tax abatements which create new assessments for the city. However he believes that concerns raised should be carefully studied. If the state law ends up with a 1% cap for home owners, he questions the need going forward for residential tax abatements. He stated that he likes the idea of a delay so that more information could be studied. He added that for large projects during a 6- week period, that there could be interim thresholds in place to capture such new large developments. Council Member White noted that "large projects" would have to be defined. Council Member Dieter suggested that everyone send their comments on the proposed "Position Statement on Tax Abatement" to him. In response to questions from President Rouse, Mr. Mathia and the Council Attorney noted that claw back provisions and the circuit breaker language is in the MOAs which must be filed with the City Clerk's Office, prior to the Council moving forward on the Confirmatory Resolution for such projects. Toro and Accuride are the only abatements which have been taken away by the Common Council. Council President Rouse stated that tax abatement may be a "great economic tool" as many have stated, however he wants to see that data and evaluate it. He stated that he has a serious concern for the entire city and that is why he is working with Council Member Dieter on this topic.