SPICER -- The Spicer City Council on Wednesday approved a recommendation to negotiate buyouts for TIF Districts No.'s 5, 8 and 9 with funds available from TIF District No. 1.
Jean Spaulding, Spicer Economic Development Authority director, was a woman of many hats as she spoke on behalf of absent financial consultant David Drown and City Administrator Kimberly Wothe. After previously consulting with Drown and City Attorney Barry Darval, Spaulding said the city could legally use funds allocated from TIF District No. 1 to help decertify others.
Tax increment financing, or TIF, is a city method of financing real estate development. TIF uses the additional property taxes paid because of development to finance a portion of the development's costs; in many cases, paying back the developer.
Spaulding displayed through the EDA proposal that the city would save a substantial amount of money with buyouts through the discontinuation of paying TIF payments back to the businesses in those districts. Decertifying the districts would also give the tax base a boost as those districts would then pay their full tax amounts, Spalding said.
"I think this would save the city a lot in the long run," said Mayor Pro Tem Terry Holmquist. He also thought a lot of people would be "happy to have all these back on the tax roll."
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Councilman Ron Schneider objected to the original proposal that included negotiating a buyout of TIF District No. 10 containing United Prairie Bank. Schneider said he wanted to meet with Drown because he questions the validity of the error-ridden TIF and tax abatement agreement made with the bank. In response, he amended the motion by excluding United Prairie Bank in the buyouts and still voted "nay" for the amended buyout motion.
Since the funds will come from district No. 1, Spaulding said, it will not be decertified as had been previously discussed. Instead, Spaulding said TIF District No. 1 would not be decertified until the end of 2008 at the earliest.
In other city news:
n Spicer's city buildings have had a tough spell. According to the council, the city library flooded Tuesday after the city moved a water main last week during construction at the library. Spaulding said a faucet in the library break room was left on when the water was turned back on Monday and flooding ensued.
Also, Wednesday's meeting was moved to the Dethlof Center after a library construction worker struck a gas line while digging near the building's sidewalk.
"I think it's jinxed," Spaulding said about the library expansion project.
