Austin city officials told members of the Austin Board of Education Wednesday night about its plans to establish another tax increment financing district on the city’s northwest side.

Thursday, February 17, 2000

Austin city officials told members of the Austin Board of Education Wednesday night about its plans to establish another tax increment financing district on the city’s northwest side.

City Administrator Patrick McGarvey and Tom Dankert, director of administrative services, presented the proposal to board members in order to prepare residents for a public hearing scheduled for March 6. The hearing will be conducted during the regular Austin City Council meeting at 5:30 p.m. that day.

The city would like to begin the steps needed to purchase a land parcel adjacent to 18th Avenue NW that formerly housed the Joseph Co. By setting up the TIF district, it would allow the city to remove old buildings and begin the process of renovating the property, currently owned by the Austin Port Authority, with a goal of adding a new business on the site.

After removing the existing structures, the land would be platted, with water and streets and utility services added. With an official TIF district set up, the school district would cease to receive tax monies for the duration of the TIF, a sum of 25 years. According to McGarvey, a common concern among districts is the loss of tax levy. The board was informed that the state of Minnesota would be able to reimburse Austin Public Schools up to 87 percent, with the difference being added to the levy, McGarvey said.

In order to recoup the cost of developing this project, a TIF district would create a tax savings, in this case, for the Cooperative Response Center, which is currently located

east of Austin. Cities can develop land within the city, and offer to sell it to interested parties at a savings and then regain a portion of the development costs. CRC would like to continue to grow from its staff of 52 employees, and garner a new permanent building on the proposed land purchase. McGarvey said CRC would like to build a 10,000-square-foot facility and possibly add 30 employees to its ranks.

"It was started here, it grew here and we would like to keep it here," McGarvey said. "We made a pledge to keep it here."

In other business, a presentation by Kenneth Hagen, a former district employee, was directed toward a request sent to the district in January regarding his wife’s plan to retire later this year. With the length of this year’s late teacher contract bargaining, the board was unclear whether or not a letter of retirement intent made its way to the administration before the new contract was ratified. A letter from Doris Hagen, asking to be allowed in under the previous contract’s compensation was presented to the board, was dated Jan. 3. The new contract was ratified days later.

Kenneth Hagen asked the board to consider drafting a memorandum of understanding that would allow the district to grandfather his wife, Doris Hagen, into the previous retirement plan, however, board members did not feel comfortable reaching a decision Wednesday night. A work session has been set up to further investigate the matter, and allow the district time to check legal avenues into the matter.

Opinions differed greatly among the board, eventually agreeing not to agree, and discuss solutions at a later time.