10/17/1979 Meeting - Laserfiche WebLink

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. at the impact and trade offs, the return to the City for the benefit e given. Mr. Lieuallen added that it would be desirable to have an assessment of the costs, in terms of tax abatement compared to the profit generated by the project. Mr. Kupper responded that there are many ways to calculate a developer's profit. Ms. Miller's understanding is that in the exemption process, since much of the downtown housing is marginal anyway and needs an extra boost, perhaps the detailed analysis is not being done so as not to determine how marginal it really is. She has no way of knowing whether the $28,000 exemption is worthwhile, but felt that an overall notion could be obtained on whether the project is financially very dubious or even impossible without the property tax exemption. She feels it is necessary to look at all different levels. If, for example, it is possible to have a more expensive building and the Federal government makes up a large portion of the rents, the tax burden could be shifted to another area, and it would be necessary to look at that. Mr. Delay said the topic is a general topic which will be useful as projects come up. These projects involve a partnership between the private and public sectors, where the public is contri- buting to the value. To the extent that there is involvement in these joint ventures and values created, then it is important to try to find mechanisms of recapturing and sharing that value. That question will have to be addressed philosophically. Assistant Manager noted that the discussion was helpful, particularly since this 1S the first application that has been processed. Ms. e Schue commented that the issue is complex because the other partner actually is the Federal government, with HUD setting the rents. There is a whole series of complexities involving the fact that the devel- oper does not control the situation in this kind of project as a private developer of another project. Mayor Keller said the basic point is that there is a need to determine the benefits of such projects. This is a question that needs to be addressed by both staff and any new developers engaged in these projects. B. New Liquor License Outlet: Frontier Airlines, Incorporated (Railroad, Public Passenger Carrier, or Boat), Located at Mahlon Sweet Airport Assistant Manager noted that all papers are in order and staff has no objection to recommending approval. Public hearing was held with no testimony presented. Mr. Delay moved, seconded by Ms. Smith, to forward to OLCC with recommendation for approval, subject to con- ditions, if any. Motion carried unanimously. e 10/17/79--9 57~