Wednesday, October 29, 2014

Great to see people pitching in to help find the money

  Red Apple Owners Enter into TIF Agreement with City

October 22, 2014
Part of reconstruction costs eligible for TIF funds
by Barry Featheringill
Sullivan Reporter
Steve Sadikoska and Tim Halili of the Red Apple Restaurant were in attendance at the October 13 city council to hear discussion regarding possible Tax Increment Financing (TIF) to help with the reconstruction of the restaurant that burned down July 29.
Mayor Ann Short opened the discussion expressing the feelings of the city: “All of us feel so badly because of your unfortunate situation. That was just horrible.”
Short then went on to explain that the TIF program is when construction is completed and taxes are assessed by the county, the difference between what taxes were before the fire and what they are after construction is completed. In talking with the city’s TIF attorney it has been determined that the construction would be eligible for TIF funding for the reconstruction of the restaurant.

“Some expenses incurred are allowable for reimbursement and some are not. With the TIF expiring in 2022 I feel it would be best to do a 75/25 split between the owners and the city of the percentage of property tax increment created” noted Short. This will give back to the developer a larger amount since there are only eight years left. The council approved the 75/25 split and proceeded to have the city TIF attorney draw up the legal papers for this agreement.
“We consider this our second home,” said Sadikoska. “We want to build for all our lives not just for a few years.”
Along with the Red Apple TIF agreement discussion Bryan Vahling also presented a request for a TIF agreement to build a storage facility. Once again since the TIF is running out in eight years the council approved having an agreement drawn up with a 75/25 split of the tax increment created.
In other matters:
• The city had previously advertised bids for a generator to be installed at the police station. Only one bid was received from Booker Brothers Heating Plumbing and Electric for the cost of equipment and installation at $11,450. The council waived the waiting period and went ahead and approved the bid.
• Commissioner Mike Mossman noted that the time to put up Christmas lights in the park is approaching, but that with the park department still mowing it decorations will be put up later than normal.
• Mossman separately reported receiving a bid for a stump grinder that could be used on the sewer department mini excavator at a cost of $7,725. One half of this cost is TIF eligible. “We have the funds within our budget to get this and it will benefit the entire city” Mossman noted.
• Councilman Bill Hagen requested approval of payment to DN Tanks in the amount of $397,319.85 for payment no. 2 for the water treatment plant project. Hagen noted that the project is moving along nicely. The payment was approved unanimously. Hagen also requested council approval of payment to Leander Construction in the amount of $12,538.00 for the waste water treatment plant. This payment was also approved by the council.
• The discussion of the proposal by Sullivan Community and Economic Development for outdoor dining around the square was once again brought up. There are concerns about having enough space on the sidewalks to have dining outside. With winter just ahead the council decided to investigate this more and bring it back in the spring if restaurant owners express interest.
• With leaves beginning to come off the trees Commissioner Monty LeCrone asked the city clerk to place an ad in the paper reminding residents not to pile leaves into ditches. “If they feel the need to burn, be sure to do it at least five feet back from the street. All city residents are encouraged to use the city burn pile located east of the sewer plant.”

No comments:

Post a Comment