LOOKING TO FUTURE GROWTH
AND GETTING A TRANSIT HUB IN VICTORIA

Len Simich from SouthWest Transit spoke at the May 10^th council meeting in Victoria.  He introduced the past and sum-marized present and future tasks of SouthWest Transit and responded to ques-tions from councilmembers.
"We've got 69 buses," said Mr. Simich.  "We were formed in 1986 under special legislation.  We've got roughly a million riders per year.  Currently we have no space available.  We're trying to stay abreast and ahead of growth.  We'd like to get out in front of it."
"We're trying to gauge where we should go next," he continued.  "We've heard from a number of your constituents.  They ask, 'When are you coming?'  We are here on a limited basis at the Field House."
Asked Councilmember Jim Paulsen, "How long would it take to get a transit hub site in Victoria?"
"Five years," replied Mr. Simich.  "One step is to join the Transit Taxing District.  It's a tax on a household, about $30 to $40 on $350,000 home.  It goes to the Metropolitan Council.  There are also federal dollars available."
Asked Councilmember Kim Roden, "What about gas prices?  Ridership nor-mally goes up when gas prices go up."
Replied Mr. Simich, "We're bringing in seven more vehicles this summer.  Last summer we brought in 13.  The bulk of our money comes from the sales tax.  What trickles down into Transit isn't known yet."
Stated Mayor Mary Thun, "I imagine we have to identify a site before we'd be eligible for dollars."
"That's a very good strategy," said Mr. Simich. 
Mayor Thun also reported that resi-dents of Victoria who live near the Field House parking lot are not appreciative of noise made by the Transit buses.  "People are sick of the buses revving up out there," said the mayor.  "The buses idle right across the street from a neighbor-hood."
"Well look at that," said Mr. Simich.  "And we'd be happy to assist the city with getting through the grant application."

ADDING 50 PUBLIC PARKING SPACES
UNDERGROUND ON THE VICTORIA CREAMERY SITE

With plans to raze the Creamery Building and erect two large brick office-retail-condo buildings in its place in downtown Victoria, Mary Meuwissen received a unanimous 5-0 council vote on May 10th that would provide $1 million in TIF assistance toward the construction of underground public parking on the site.
On May 24^th council voted 4-1 (with Kim Roden casting the nay vote) to draft a developer's agreement between the City of Victoria and Victoria Creamery LLC and approve a TIF note of $1.75 million, which is the projected cost of constructing the underground public parking.
For the next 18 years, the increase in property taxes paid by the Creamery owner due to the increased valuation that will result from the large improvement to the property, will be returned to the city to the developer to pay for the public parking.  That tax increment will not be spread to the school district and county until the year 2025.

May 10^th

Jim Sweeney, accountant with David Drown and Associates, reviewed Tax In-crement Financing with city councilmem-bers at a workshop on Thursday, May 10^th.  In fact, council was seated that evening as Victoria's Economic Develop-ment Authority.
"Tax Increment Financing is a tool," he said.  "It captures and redirects taxes by new development.  There is a 'but for' test.  It can only be used when absolutely necessary.  The county and the school continue to receive taxes on the property's frozen value.  The city receives taxes on the new value."
He explained that the difference in property taxes between the original (frozen) value and the new (due to im-provements) value is called the increment.  All of that increment goes back into the TIF district to help pay for things like public infrastructure, including public parking.
Property goes back on the tax rolls for county and school when the tax dis-trict is finished, which can be several years.  There are currently three TIF districts within the downtown area of the City of Victoria.
"It takes approximately 90 days to create a TIF district," said Mr. Sweeney.  "At least 90% of the tax increment must be used to correct the blighted condition.  If the public parking in the Mary Meu-wissen [Creamery] project is something you find valuable, or desire to accomplish, then you'd consider subsidizing the project."
The proposed Creamery project lies within TIF District #3, a district that will dissolve on June 30^th, 2007, unless a pro-ject gets underway.
A new fourth TIF district is being considered for the Land Swap Area, west to the Dairy Queen, that doubles the size of downtown Victoria.  Advised Mr. Sweeney, "We recommend you don't do this fourth district until you have a project imminent because it starts the five-year clock ticking."
He explained that major improve-ments have to be formally initiated within that five-year time frame or the city doesn't get the increment, and that a new district would have to be created. According to Holly Kreft, Director of Planning for the City of Victoria, "The time required to create a new TIF District is approximately 90 days, depending on meeting schedules, consultant turnaround, etc.  I do not know an exact cost [of creating a new TIF] but I'm anticipating that it would be approximately $5,000 to $10,000 depending on legal and TIF consultant fees ... The applicant had specifically requested to be placed in TIF District #3 due to the timing."
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