Holly Kreft informed councilmem-bers that Mary Meuwissen is planning for 61 underground parking spaces, 50 of which would be open to the public.  It is this public parking space that makes the project available for Tax Increment Finan-cing. 
Jay Lindgren, an attorney with the Dorsey Whitney law firm, speaking on behalf of the Creamery developer, stated "Mary Meuwissen must enter into a construction contract by June 30^th for the public parking.  There is something in excess of $1 million available in that district."
"The package cost estimate is $1.7 million," said Mr. Lindgren about the cost of constructing the underground public parking.  "We'll continue to try to drive that cost down.  We'll probably need the full amount of TIF available."
'We would hope you'd direct staff to work with us on a fast pace to accomplish this," he continued.  'We'd need your vision and commitment that this is some-thing you'd want to do.  It would be used for public parking.  All of the public park-ing would be within the Mary Meuwissen property."
The developer is asking for it to be an 18-year TIF district.  In other words, the tax increment -- calculated on the improved property -- would come to the City of Victoria for the District #3 improvement for 18 years.  The school district and county would only receive taxes on the property's current frozen value, until 2025 when it's returned to the normal tax rolls.

Jim Holmes, introduced as a TIF lawyer who crafted the original TIF legislation for the State of Minnesota, also spoke on behalf of Mary Meuwissen and the underground public parking that is proposed as part of the development of the Creamery site. 
"I was in 1979 the drafter of the TIF legislation," said Mr. Holmes.  "I want to assure you today that the proposal before you is absolutely classic.  This is a free-standing project.  We're not asking that anything else in [TIF] District #3 contribute.  This project stands alone.  It's very clear that public parking is at the top of the list.  I am confident this can be put together very quickly if you wish to proceed."
Mayor Mary Thun asked him, "Is there any prohibition for us to charge a fee for parking in that lot, with the revenue to be used for anything in the city?  I'm on a mission here to get money for the city.  The developer has many ways to make money on the project.  The developer makes a commitment to the city.  This developer knows we need money.  I sug-gest to staff that conversation be entered into."
Mr. Lindgren replied, "I think that would be something we'd have to discuss.  There might be negative ramifications.  My first reaction is negative for the suc-cess of the development.  The proposal is for free public parking."
Mayor Thun also stated, "I am not in favor of TIF for more than three to five years ... but this is a significant project."
Councilmember Jim Paulsen said, "Fees for parking only works for big time sales per foot.  I'm not seeing it as a revenue source but as a capital asset."
His concerns, instead, were with future improvements to Hwy 5 and the Land Swap Area.  "I don't want to have only one way to get in and out of here," he said.  "I want to protect both partners, the developer and the city."
City Attorney Mike Norton advised, "MnDOT has got to leave us a viable access to downtown.  I can see businesses that front Hwy 5 having terrible problems, however."
About meeting the TIF deadline of June 30^th, he added, "I think it's doable in the timeframe, but the devil is in the de-tails."
Commented Councilmember Tim Amundsen, "I'm learning we want a small quaint downtown.  The larger it becomes, the more dead buildings there are.  The small footprint of downtown Victoria is ever more attractive to me."
"This business of giving up 18 years of TIF does not sit well with me," contin-ued Mayor Thun.  "I'm talking a mini-mum charge for parking!  There are many cities that charge for parking.  The devel-oper is getting all the money from this District.  She can keep on earning well after I'm gone from here."
The developer's Attorney Lindgren said that the public parking as planned would be available on a first come-first served basis.
Councilmember Jim Paulsen made the motion to authorize a term sheet with the developer, specifying 50 parking spaces assigned to the public with an easement agreement, and also get the applicant to acknowledge Hwy 5 and access issues.  The TIF would be for 18 years.  "The 50 parking spaces are essen-tial and that is the city's payback!" he declared.
With an amendment by Councilmem-ber Amundsen to insert "at least" 50 public parking spaces, the motion passed unanimously. 

May 24^th

A term sheet that includes project description, general development timing and phasing and costs was reviewed by councilmembers on May 24^th.
Stated City Attorney Mike Norton, "The developer is asking for a TIF note of $1,750,000."  This amount includes the costs of demolition, preparation, design, and construction allocated to public park-ing at the site.

Click here to continue 50 Public Parking Spaces.