The centerpiece of the meeting was the tax abatement request for a long-anticipated development project. The council reviewed a motion of support for the project, essential for proceeding with an ITR grant application. The city had already secured an ITR grant of $630,000, less than initially requested, spotlighting the importance of the abatement in bridging the financial gap. The project’s costs have surged to approximately $8.6 million, with a significant discrepancy between the projected construction costs and the assessed value of $6.1 million, prompting the need for the tax abatement.

A public hearing for the tax abatement was scheduled for September 25th, a prerequisite for formal consideration. Detailed information was shared with the council members to ensure they were well-informed about the project’s financial aspects and status. Rising equity requirements for funding, now between 40-55%, further complicated the financial landscape, with only $2.4 million in equity raised to date.

The initial tax abatement request proposed up to 15 years with a cap of $375,000. However, through negotiations, the request was reduced, allowing the city to receive 20% of the increased tax revenue immediately, generating an estimated additional $13,000 annually. An essential addition to the agreement was a “look back” clause, allowing for a review of actual versus projected rents after the project’s stabilization, potentially adjusting the tax abatement amount starting in year nine.

The council’s discussion emphasized the need for cooperation between the city and county, although it was decided to proceed with individual agreements for this project due to time constraints. The county assessor’s valuation, tied to the project’s income, will impact the overall tax situation, potentially altering the duration of the tax abatement.

In another major update, John Hiller from MGO Construction provided a progress report on the City Hall and liquor store project. The structural steel work is complete, and roof decking has been installed. Steel stud framing is underway, particularly on the building’s west side. Hiller mentioned ongoing work on the underground drainage system and the parking lot, with sheathing, exterior waterproofing, and sidewalk installations scheduled for the following week. The project completion date has been revised to around January 17, due to earlier delays. Efforts are being made to expedite the liquor store’s opening to avoid additional rental costs for the city. Hiller also highlighted the preparation for a time capsule project, slated to begin in early November.

Budget discussions were another focal point, with council members reviewing property tax-supported budgets with department heads. A preliminary levy of $1,152,636.45 was proposed. This preliminary levy represents a maximum limit, adjustable downward during the budgeting process. The council noted discrepancies in revenue figures, correcting a typo to ensure accuracy before approving the preliminary budget unanimously.

Public safety and community perceptions were also addressed. A suggestion for police officers to wear blue uniforms on Tuesdays was clarified, with officers restricted to white uniforms due to county or state rules. The council discussed the complexities of call coding and dispatching, emphasizing the need for more transparent data on call types and frequency. An upcoming presentation on community safety perceptions is scheduled.

The council considered funding requests from the tennis pickleball association for equipment. These requests typically go through the county’s budget, given the county’s ownership of the facilities. The council debated establishing a formal process for such requests but decided to maintain the current informal approach for now.

Additionally, updates on signage for the new liquor store were discussed, focusing on design and structural integrity. The council reviewed plans for signs on multiple faces of the building and considered future heavy signage ideas.

Finally, the condition of Bear Tree Park and its bear statue was raised, with concerns about overgrown cedar trees obscuring the sign. The council acknowledged the need for pruning and potential replanting to maintain the park’s aesthetics, along with ongoing attention to the statue’s restoration.