Replied Councilmember Kim Roden, "If we do a referendum and it fails, what are we going to do with our staff?"  One option is building out the Village Hall space into offices.  Another option is using a community room constructed at the new Victoria Fire Station.
Stated Finance Director Jylan John-son, "Having a referendum is expensive."
Stated Financial Consultant Paul Donna, "Having a referendum is messy.  The three-in-one project makes sense to me using the HRA.  It's a business trans-action.  Keep that in mind."
Paul Donna said that with an HRA project, "Bonds are issued as tax exempt so strict rules apply as to who the tenants can be.  The payment a city makes to an HRA or EDA [Economic Development Authority] is outside of levy limits under current law.  That's the reason to involve the HRA."
The senior housing component of the Waconia Town Center is financed by the issuance of $7.3 million of Housing Development Revenue Bonds.  The first $3 million of debt is secured by the City of Waconia's general obligation pledge.  The City of Waconia is obligated for up to 50% of any operating losses.
The mixed use offices component of the Waconia Town Center is financed by the issuance of $3.9 million of Public Facility Lease Purchase Revenue Bonds plus $550,000 of City of Waconia funds.
Mayor Bohn said, "We've got to figure out the advantages of Presbyterian Homes or the HRA.  We need to establish advantages.  What are the subsidies?  Does it translate into lower rents?  What are the advantages of private versus pub-lic?"
A housing development consultant will hopefully answer those questions.  It would take the HRA two years to get a Victoria Town Center up and running once a decision would be made.

PAUL KOHLS VISITS VICTORIA COUNCIL
SUPPORTS MOTOR VEHICLE TAX AMENDMENT

State Representative Paul Kohls, a resident of Victoria, was invited by Vic-toria City Councilmember Mary Thun to speak about highlights of the recent legis-lative session which just closed.  He gave a Visitor's Presentation at the July 13^th city council meeting.
"Every day the legislature is not in session is a good day for the taxpayers," said Paul. 
Regarding transportation funding, he said the Motor Vehicle Sales Tax Amend-ment will be on the ballot this fall.  "It's an opportunity for us to have a direct im-pact on public policy," he said.  "It's a constitutional amendment.  It bypasses the governor's desk and goes straight to the voters.  I support the amendment."
He explained that currently only one-half of the motor vehicles tax goes to help fund transportation issues.  "This amend-ment would be an additional $300 million for transportation by the 2011.  Every-body wants more money for transporta-tion, but the money will no longer go into the general fund.  We need to know how to deal with that."
When asked about traffic congestion on State Highway 5 through Victoria, Paul replied, "I wish I had good news about that road out there.  Highway 5 has come onto MnDOT's formal radar screen, but it's unknown when dirt will be moved.  If the amendment passes this fall, it'll get done quicker."
He said, "Projects get funded on merit and need rather than political favor, which is generally a good process."
Moving on he stated, "I was the author of a fairly significant identify theft bill.  I'm proud of that accomplishment."
He added, "Senator [Julianne] Ortman and I carried legislation that can combine three elected offices into one and they can be appointed.  Carver County was the only county in the metropolitan area to have them elected."  Representa-tive Kohls was referring to the offices of the Carver County Treasurer, Auditor, and Recorder.
Councilmember Richard Tieden asked him if there was any opportunity to help with the unsafe intersection at State Hwy 5 and Park Drive in Victoria. 
Replied Paul, "One of the things we can do is reduce access points on Hwy 5.  I encourage staff and councilmembers to get in touch with me.  I'd like to get more information on it.  I'm happy to meet with you and see what we can do.  MnDOT has discretion over where it spends dollars."
"I'll contact you next week," stated Councilmember Tieden.

ONE STEP CLOSER TO PHASE TWO
OF DOWNTOWN VICTORIA REDEVELOPMENT

The City of Victoria entered into an agreement for professional services by TKDA to complete the Downtown Feasi-bility Study.  Total cost for this "scope of services" project is $32,900.
Said City Engineer Cara Geheren of TKDA, "We're basically looking at Phase Two utilities.  Phase One was completed in 2002.  This includes the remainder of the downtown district" - located in the area of Quamoclit Street, Stieger Lake Lane to Highway 5, and possibly the extension of Commercial Blvd.
She said the study project will deter-mine costs and feasibility for constructing utilities for Phase Two, streets, storm-sewer, streetscape amenities, structured parking sites, berming requirements, assessments, possibilities for stormwater ponding, and phasing components of the project.
TKDA gets 60 days to complete the scope of services.  Then City Finance Director Jylan Johnson looks at the big picture and Tax Increment Financing.

Click here to continue Victoria Redevelopment.