City Council Minutes 2020 02 18 - Laserfiche WebLink

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City Council Meeting Minutes February 18, 2020 Page 13 of 18 Mayor Stolzmann stated removing this language makes it clear the intent is not to include a neighborhood. She noted a future Council could approve a service plan change to allow for adding additional areas. Attorney Kelly stated the service plan has limitations on inclusion and exclusion powers under state law. As written, any addition of property would require City approval as well as written approval from property owners. Councilmember Lipton asked how a service plan amendment would happen. City Attorney Kelly stated the same process for this initial approval would be used. (d) The area to be included in the proposed special district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. Mayor Stolzmann asked Jim Manire, the City's financial consultant, if he had evaluated whether or not the development timeline was reasonable and if there was market support for what is proposed. Manire stated his review does not include a market study but rather evaluates the consistency of the debt plan with respect to the projections provided. Mayor Stolzmann asked if all of the districts are equally loaded or is one district more important to pay the debt. He stated the financing plan should be viewed as a possible execution of a debt plan but not the final plan. Mayor Stolzmann stated looking at the distribution of development across the districts it seems 2 and 3 have good plans but 4 has a lot yet to be determined with the majority of the debt coming from that district. The way she reads it there is not sufficient evidence the debt can be repaid when the majority is in this one district and there is no market study to support the numbers. Councilmember Brown asked Manire if his analysis takes the applicant's information at face value and assesses if the numbers presented will work. Manire stated yes, he is working with the numbers presented by the developer. Councilmember Brown asked the City Attorney if it is correct that in the end the financial plans may or may not be executed as presented here. City Attorney Kelly stated that is correct. Councilmember Lipton stated he has never seen a market study l000king out more than five years that ended up exactly as presented. This will probably develop differently than any market study given today. That is the normal process. Councilmember Lipton asked what is the risk to the City if the market changes and it doesn't develop as proposed. Attorney Kelly stated from a legal standpoint any debt taken on by the District is not associated with the City and does not put the City at risk.