Transcript of end of Council/School Board working session

Randy Meyer: The one thing we were hit pretty hard with this year was the million-two in abatements
and I believe that had to do with the five million that was reimbursed to the redevelopments down at
Pentagon Park. Should we expect more of that happening? I'm a little concerned too with the 26 year
TIF district. That's pretty painful long term, and also those properties were reduced in value by about
70%, which raises some real concerns for me personally.
Ann Swenson: Well, our Southdale TIF district is done this year.
Jim Hovland: Centennial Lakes one you mean?
Ann Swenson: Uh huh. We've started a new one in Pentagon Park, but since...
Jim Hovland: He was alluding to Pentagon Park. We set up a TIF district there, but we haven't used any
of it yet.
Randy Meyer: Well, we were hit with abatements of a million-two and also those properties were
reduced in value on the books by 70%, so that raises some concerns.
Ann Swenson: Well, they were probably reduced... [indecipherable]
Jim Hovland: [indecipherable]
Bill Neuendorf: I can speak to that a little bit. So our tax assessor office has full detail on that, but those
properties had been in tax appeal for a couple years, when they went through the foreclosure and the
mess there in 2008, 2009. So, that was finally settled about a year and a half ago, and the valuation
dropped for everybody, so it hit the schools, it hit the city, it hit the county....
Randy Meyer: But it went down by 70%, so thats...
Ann Swenson: Right, but we didn't lower it by 70%.
Randy Meyer: Yes, you facilitated the lowering of it with your appraisals.
Bill Neuendorf: Right, so...
Randy Meyer: Six of them are valued at $1,000 right now and I don't understand that.
Bill Neuendorf: So, the tax assessor had full information. I'm just the messenger on this one.
Kevin Staunton: And there is a process for appealing that too.
Bill Neuendorf: They had appealed it, they went back and forth, they had their attorneys, we had our
attorneys, and that's the place where they settled. That's the short story. I don't have all the details. But
that is the baseline for the property [indecipherable] when they went into foreclosure, they lost tenants,
they were at excessively high vacancies and the appeals process recognized that. So that's a hit for
everybody.

Randy Meyer: My concern is the 26 year tax increment financing. It has a longterm affect, about $30-50
million for the school district. Just want you guys to be careful when you're establishing TIF districts to
understand the school district's impact of that.
Ann Swenson: OK. The one that is decertifying, though, is the Southdale one, so...
Randy Meyer: That's not related.
Ann Swenson: But that comes back to you as an increase.
Bill Neuendorf: It's actually Centennial Lakes. And so, ironically, the majority of that is in Richfield.
Meeting ended a few seconds later.