HomeMy WebLinkAboutResolution - 84-94 - Tax Increment District #7 - 04/17/1984 CITY OF EDEN PRAIRIE
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. 84- r�J
RESOLUTION PROVIDING FOR ES"rABLISHMENT OF PROPOSED
TAX INCREMENT DISTRICT NO. 7 AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN RELATING THERETO
BE IT RESOLVED by the City Council (the "Council") of the City of Eden
Prairie, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. it has been proposed that the City establish an additional tax increment
district within Development District No. I and adopt a tax increment financing plan
relating thereto, all pursuant to 'Minnesota Statutes, Section 273.71 to 273.78,
inclusive, as amended.
1.02. This Council has caused to be prepared, and has investigated the facts
with respect thereto, a proposed Tax Increment Financing Plan for a proposed Tax
Increment District No. 7.
1.03. The City has performed all actions required by law to be performed
prior to the establishment of Tax Increment District No. 7 and the adoption of the
Tax Increment Financing Plan for Tax increment District No. 7, including, but not
limited to, consultations or the opportunity for consultations with Hennepin County
and the School Districts having taxing jurisdiction over the property proposed to be
included in Tax Increment District No. 7, and the holding of a public hearing upon
published and mailed notice as required by law.
1.04. The Council hereby determines that it is necessary and in the best
interests of the City at this time to establish Tax Increment District No. 7 and to
adopt the Tax Increment Financing Plan relating thereto.
Section 2. Findings Concerning Establishment of Tax Increment District
No. 7.
2.01. The Council hereby finds, determines and declares that Tax Increment
District No. 7 constitutes a "tax increment financing district," as defined in
Minnesota Statutes, Section 273.73, Subdivision 9, and further constitutes an
"economic development district," as defined in Minnesota Statutes, Section 273.73,
Subdivision 12.
2.02. The Council further finds, declares and determines that Tax Increment
District No. 7 does not meet the requirements found in the definition of
redevelopment district or housing district, as defined in Minnesota Statutes,
Section 273.73, Subdivisions 10 and 11, respectively, but is in the public interest,
thereby qualifying it as an economic development district.
2.03. The Council further finds, declares and determines that the
development presently occurring for which tax increments from Tax Increment
District No. 7 will be used, in the opinion of the Council would not have occurred
solely through private investment within the reasonably foreseeable future and,
therefore, the use of tax increment financing is deemed necessary; that the Tax
Increment Financing Plan for Tax Increment District No. 7 conforms to the general
plan for the development of the City as a whole; and will afford maximum
Opportunity, consistent with the sound needs of the City as a whole, for the
development of the Development District by private enterprise.
2.04. The Council further finds, declares and determines that the City made
the above findings stated in Section 2 and has set forth the reasons and supporting
facts for each determination in writing, attached hereto as Exhibit "A".
2.05. Under and pursuant to Minnesota Statutes, Sections 273.71 to 273.78,
inclusive, as amended, Tax Increment District No. 7 is hereby established in and for
the City. The property included in Tax Increment District No. 7 shall be the
property described in the Tux Increment Financing Plan for Tax Increment District
No. 7, adopted in Section 3 hereof.
Section 3. .Adoption of Tax Increment Financing Plan for Tax Increment
District No. 7.
3.01. The Tax Increment Financing Plan for Tax Increment District No. 7 is
hereby approved and adopted in the form on file and of record in the Office of the
Finance Director-Clerk.
Section 4. Implementation of Tax Increment Financing Plan for Tax
Increment District No. 7.
4.01. The officers of the City, the City's financial advisor and the City's legal
counsel and bond counsel are authorized and directed to proceed with
implementation of the Tax Increment Financing Plan for Tax Increment District
No. 7 and for this purpose to negotiate, draft, prepare and present to this Council
for its consideration all further plans, resolutions, documents and contracts
necessary for this purpose.
Section 5. Certificate of Assessed Value.
5.01. The County Auditor of Hennepin County (the "Auditor") is hereby
requested to certify the original assessed value of all real property as described in
the Tax Increment Financing Plan for Tax Increment Financing District No. 7, as of
January 2, 1983, and each year hereafter to certify the amount by which the
assessed value has increased or decreased from the assessed value of January 2,
1983. Each year the Auditor shall also add to the original assessed value of Tax
Increment District No. 7 an amount equal to the original assessed value for the
preceding year multiplied by the average percentage increase in the assessed
valuation of all property included in Tax Increment District No. 7 during the five
years prior to certification of Tax Increment District No. 7, and also to certify the
proportion which any such increase or decrease bears to the total assessed value for
t1he real property in Tax Increment District No. 7 for that year and to remit to the
City of Eden Prairie each year, commencing in 1986 and ending in 1993 that
proportion of all taxes paid that year on real property in Tax Increment District
No. 7 which the captured assessed value bears to the total current assessed value,
all pursuant to Minnesota Statutes, Section 273.76, Subd. 1, as amended.
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.1 v
u (Mayor
nance.Oi ector-Clerk
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EXHIBIT ".A" TO RESOLUTION NO. 84-94
Reasons and Facts Supporting Findings
for Establishment of Proposed Tax Increment
District No. 7 and the -Adoption of a
Tax Increment Financing Plan Relating
Thereto.
BACKGROUND AND SUMMARY OF EVIDENCE
The City Council adopted Development District No. 1 and Tax Increment
Financing Plan for an Economic Development District on September 22, 1981.
Thereafter, on March 30, 1982, the City Council adopted Amended Development
District No. 1 Program and Tax Increment Financing Plans for the City of Eden
Prairie, Minnesota. The latter included Tax Increment District No. I and Tax
Increment District No. 2. On November 16, 1982 the City Council adopted Tax
Increment Financing Plan For Tax Increment District No. 3. On :March 14, 1983 the
City Council adopted Tax Increment Financing Plan For Tax Increment District
No. 4. On May 17, 1983 the City Council adopted Modified Development District
No. 1. The latter included Tax Increment District Nos. 1, 2, 3 and 4. The Tax
Increment Financing Plan for Tax Increment District No. 5 was also adopted on
May 17, 1983. On August 16, 1983 the City Council adopted Tax Increment Financing
Plan For Tax Increment District No. 6. Adoption of the Development District No. 1
and Tax Increment Financing Plan for an Economic Development District on
September 22, 1981, was preceded by a hearing thereon held on September 15, 1981.
At the hearing extensive evidence in the form of documents, memoranda, reports
and oral testimony was introduced, all of which is set forth in minutes of the
meeting of the City Council held on September 15, 1981. The evidence introduced
and as described in the minutes of September 15, 1981, is made a part of the record
in these proceedings. Also made a part of the record in these proceedings are: a)
the notice of the April 17, 1984 public hearing; b) minutes of meetings of the City
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Council held on September 22, 1981, March 30, 1982, November 16, 1982, March 15,
1983, May 17, 1983 and August 16, 1983; (--) letter from Eden Prairie Chamber of
Commerce dated September 18, 1981; d) minutes of meetings of the City's Planning
Commission on March 29, 1982 and May 9, 1983; e) memorandum dated April 17, 1984
by Eugene A. Dietz, Director of Public Works, addressed to the Mayor and City
Council; f) a letter dated April 9, 1984 addressed to Mr. John Lobben, Chairman of
the Board, Eden Prairie School District No. 272; g) a letter dated April 9, 1984
addressed to Mr. Kenneth Daniels, Chairman of the Board, Joint Independent School
District No. 287; h) a letter dated April 4, 1984 addressed to Mr. John Derus,
Chairman of the Hennepin County Board of Commissioners; and i) a memorandum
dated April 17, 1984 by Carl J. Jullie, City Manager.
Summary of portions of the evidence contained in the record relevant to the
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findings contained in Section 2 of Resolution No._'?3-H- C follows. The project for
Tax Increment Financing Plan for Tax Increment District No. 7 is described as the
"Development Program" in the Modified Development Program for Development
District No. 1 including Tax Increment Financing Plans for Tax Increment Districts
Within Development District No. 1 dated May 17, 1983 (hereinafter referred to as
"Modified Development Program"). The geographic area of the Project is described
in the Developrnent Program. Tax Increment District No. 7 consists of sixteen
parcels identified by the following property identification numbers (PIN):
14-116-22-13-0029 14-116-22-13-0026
14-116-22-13-0016 14-116-22-31-0010
14-116-22-31-0009 14-116-22-31-0013
14-116-22-31-0012 14-116-22-31-0004
11-116-22-44-0001 11-116-22-42-0030
.13-116-22-22-0009 13-116-22-12-0001
13-116-22-11-0004 12-116-22-32-0003
14-116-22-13-0033 13-116-22-23-0007
Eugene A. Dietz, Director of Public Works for the City has provided a
memorandum dernonstrating that the parcels in Tax Increment District No. 7 are
r., situated within the geographical area of the Project.
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In his rnemorandum dated July 7, 1981, Chris Enger, Director of Planning of
the City, stated that the concept of a Ring Road in the major center area was
adopted in the City's first Comprehensive Guide Plan in 1968 which was further
refined in 1973 as part of the major center area planned unit development. Mr.
Enger noted that regional office and commercial development has been stifled by
the lack of good regional access. He also stated that if congestion can be reduced
and access improved in the major center area, rapid growth will result in the
traditionally established pattern of development following roads. If access cannot
be improved, growth will stagnate as more accessible commercial areas retain a
competitive advantage over the City. In a. letter dated September 18, 1981, Eden
Prairie Chamber of Commerce stated that it views the project as necessary to the
growth and development of the City in general and of the major center area in
particular. In a letter dated September 14, 1981, Ron Wesley, Center Manager for
j Hornart Development Co., stated that since the opening of highway improvements
in November, 1979, consisting of Highway 169/212 south exit ramp from I-494
westward, traffic movements have steadily increased. Also during this period of
time the Eden Prairie Center's occupancy levels, that is the number of merchants,
have also increased. At the public hearing conducted by the City Council on
September 15, 1981, on the matter of Development District No. 1 and Economic
Development District and Tax Increment Financing Plan, Robert Doblett, a real
estate expert, testified that he does not believe Eden Prairie is experiencing the
degree of development which should be expected and that can be ascribed to
troublesome egress and ingress. He believes the Project ought to be of relief to the
bottlenecking of access to the major center area and that it will open up the area
to development. He believes it will result in substantial construction velocity, all
of which will arnount to appreciation of the value of the land which will increase
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taxes. He stated that the Project will result in the preservation and enhancement
of the tax base in Eden Prairie; that in connection with jobs the Plan would be to
the City's benefit; and that the Plan would discourage commerce, industry or
manufacturing from moving their operations to another state. He stated the plan is
an economic good for the City. Eugene A. Dietz, Director of Public Works, in a
memorandum dated .April 17, 1984, stated that the parcels of property located
within Tax Increment District No. 7 are not structurally substandard and do not
require substantial renovation or clearance. The parcels are not in a condition
having unusual terrain or soil deficiencies requiring substantial filling, grading or
other physical preparation for use and at least 80 percent of the total acreage of
the parcels do not have a fair market value which when added to the estimated cost
of preparing that land for development, excluding costs relating to roads and local
improvements, exceeds their anticipated fair market value after completion of the
preparation. He also states that the parcels do not consist of air rights over a
public street or highway or of rail yards, rail storage facilities or railroad right-of-
ways. Carl Jullie, City ,Manager, in a memorandum dated April 17, 1984, stated
that while improvements in the Project have been conternplated at least since the
early 1970s and efforts have been made to conduct the improvements through the
local improvement special assessment to benefited lands procedure or through
other private investment alternatives, accomplishing this objective has rnet •with
only limited success with respect to a small part of the project. The building of
roads, bridges, underpasses and other major highway improvements has not
historically been within the capability of private investment and there is no
indication in the light of present economic conditions that private investment could
in the reasonably foreseeable future cause the improvements in the Project to be
made.
i"
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At its meeting on August 24, 1981, the Planning Commission found that the
Tax Increment Financing Plan conforms to the general plan for the development of
the municipality as a whole; at its meeting on March 29, i982, the Planning
Commission in reviewing the Amended Development District No. 1. Program and
Tax Increment Financing Plans dated March 30, 1982, found that the Plan conforms
to the general plan for the development of the municipality as a whole; and at its
meeting on May 9, 1983 the Planning Commission in reviewing the proposed
"Modified Development Program" found that it conforms to the general plan for the
development of the municipality as a whole.
A mernorandurn by City Assessor, Bob Martz, dated July 7, 19811, relects the
valuation for general ad valorem taxes of real property within the major center
area has been reduced in the following arnounts for the following owners during the
following periods:
Sears Roebuck & Co.
1977-1980
$4,471,000.00
Homart Shopping Center
1978-1980
$7,979,400.00
Powers Department Store
1977 and 1978
$4,720,000.00
Byrnemorandum dated August 15, 1983 Martz updated the July 7, 1981 memorandum.
The Sears Roebuck & Co. valuation was not reduced any further for the period
1978-1993. The Homart Shopping Center valuation experienced an increase of
$301,300.00 ?^plicable to years 1981 and 1982 but was reduced $627,050.00 for 1983,
resulting in a net reduction for the period 1981-1983 of $24,450.00. Powers
Department Stores experienced a net reduction of $1,300,000.00 for the period
1979-1983. A report from Jack Hacking dated September 8, 1981, to Carl Jullie
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setting forth accident information in the major center area indicates that during
the period 1975-1981 a total of 680 accidents occurred in the area resulting in 274
injuries and 7 fatalities.
Based upon the evidence and -the record the Council sets forth its further
specific reasons and facts supporting its findings as follows:
I.
The Tax Increment Financing District No. 7 contained in the Tax Increment
Financing Plan for "fax Increment District No. 7 consists of sixteen parcels
identified by the following property identification numbers (PIN):
14-116-22-13-0029 14-116-22-13-0026
14-116-22-13-0016 14-116-22-3i-0010
14-116-22-31-0009 14-116-22-31-0013
14-116-22-31-0012 14-116-22-31-0004
11-116-22-44-0001 11-116-22-42-0030
13-116-22-22-0009 13-116-22-12-0001
13-116-22-11-0004 12-116-22-32-0003
14-116-22-13-0033 13-116-22-23-0007
(Tax Increment District No. 7 hereinafter refereed to as the "District"; Tax
Increment Financing Plan for Tax Increment District No. 7 hereinafter referred to
as the "Plan"; and the property located within the District and identified above
hereinafter referred to as the "Parcels".)
II.
The Project described in the Plan is that set forth in Section I, Development
Program, in the Modified Development Program, dated May 17, 1983 referred to in
the Plans. The project consists of public improvements including roads, grading,
f,.
curb and gutter, storm drainage, utilities, sidewalks, bituminous surfacing, traffic
signals, underpass and ramps, all as more fully described in the Development
Program (the "Project"). The geographic area of the Project is described in the
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Modified Development Program at pages I-A-I through I-A-4, the boundaries of
which are further delineated on a reap at page I-B-1. The Parcels are wholly
contained within the geographic area of the Project.
III.
Construction of the Project will reduce traffic congestion and provide better
access to lands within the Project geographic area which will result in the
development of such lands, the construction of buildings thereon, the increase of
business and commerce and the increase in jobs as a result thereof, all of which will
contribute to economic growth and development in the City.
IV.
The District is, therefore, a tax increment financing district as defined by
Minnesota Statutes, Section 273.73, Subd. 9.
V.
The Project, being one for the improvement of roads within its geographic
area, is not intended for occupancy by persons or families of low and moderate
income as defined in those acts and laws referred to in :Minnesota Statutes Section
273.73, Subd. 11, and is not a housing district as defined therein.
VI.
In the District there are two partially constructed buildings. The partially
constructed buildings are not structurally substandard and do no'� require renovation
or clearance.
VII.
The Parcels are not in a condition having unusual terrain or soil deficiencies
requiring substantial filling, grading or other physical preparation for use and least
80 percent of the Parcels do not have a fair market value which, when added to the
estimated cost of preparing the Parcels for development excluding costs related to
roads and local improvements, if any, exceed their anticipated fair market value
after completion of such preparation.
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VilI.
The Parcels do not consist of air rights over a public street, highway or right-
of-way.
IX.
The Parcels do not consist of used rail yards, rail storage facilities or
excessive or vacated railroad right-of-ways.
X.
The District is not a redevelopment district as defined in Minnesota Statutes
Section 273.73, Subd, 10.
XI.
The Project, which will be financed in part from the tax increments from the
District, will (a) discourage commerce, industry or manufacturing from moving
their operations to another state: (b) result in increased employment in the City;
and (c) result .in preservation and enhancement of the tax base of the City and is
therefore in the public interest.
XII.
The District is an economic development district within the meaning of
Minnesota Statutes Section 273.73, Subd. 12.
XIII.
The improvements in the Project have been contemplated since the early
1970s. While efforts were made to construct the improvements through the local
improvements special assessment to benefited lands procedure or through other
private investment alternatives, doing so has met with only limited success as to a
small part of the Project. Furthermore, the building of roads, bridge;, underpasses
and other major highway improvements has not historically been within the
capability of private investment. There is no indication in the light of present
economic conditions that private investment could in the reasonably foreseeable
future cause the improvements in the Project to be made. For these reasons the
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use of tax increment f inancing for construction of the Project is deemed necessary.
XIV.
The Project and the improvements within its geographic area have been
reviewed by the City's Planning Commission prior to the adoption of the Modified
►Development Program and were found to conform to the City's general plan for its
development as a whole.
XV.
The construction of the Project will reduce congestion and enhance access to
private lands within the Project's geographic area and will thereby encourage and
afford development of the lands within the Project's geographic area by private
enterprise.
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MEMORANDUM
TO: Mayor and City Council
THROUGH: Carl Jullie, City Manager
FROM: Eugene A. Dietz, Director of Public Works
DATE: April 17, 1984
RE: Tax Increment District No. 7
I, or persons on my staff, have inspected the parcels of property located
within Tax Increment District No, 7, identified by parcel identification numbers
(PIN) as follows:
14-116-22-13-0029 14-116-22-13-0026
14-116-22-13-0016 14-116-22-31-0010
14-116-22-31-0009 14-116-22-31-0013
14-116-22-31-0012 14-116-22-31-0004
11-116-22-44-0001 11-116-22-42-0030
13-116-22-22-0009 13-116-22-12-0001
13-116-22-11-0004 12-116-22-32-0003
14-116-22-13-0033 13-116-22-23-0007
(hereinafter "the parcels"). The inspections disclose the following:
1. In the District there are two partially constructed buildings. The
partially constructed buildings are not structurally substandard and do not require
substantial renovation or clearance.
2. The parcels are not in a condition having unusual terrain or soil
deficiencies requiring substantial filling, grading or other physical preparation for
use. At least 80 percent of the total acreage of the parcels do not have a fair
market value which, when added to the estimated cost of preparing that land for
development excluding costs related to roads and local improvements, if any,
exceeds their anticipated fair market value after completion of such preparation.
3. The parcels do not consist of air rights over a public street, highway or
right-of-way.
4. The parcels do not consist of used rail yards, rail storage facilities or
excessive or vacated railroad right-of-ways.
5. The parcels of property located within Tax Increment District No. 7
are each by definition a contiguous geographic area. The Parcels are situated
within the project described in Tax Increment Financing Plans for Tax Increments
Districts Within Development District No. I which is by reference the Development
Program described in Modified Development Program for Development District
No. 1. .Attached hereto as Exhibit I is a copy of the boundary map of Modified
Development Program for Development District No. I on which is shown the
location of the Parcels.
-u ene A. Dietz —
Director of Public Works
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MEMORANDUM
TO: Mayor and Cite Council
FROM: Carl Jullie, City Manager
DATE: April 17, 1984
RE: Tax Incre►rent District No. 7
Improvements in the Project area have been contemplated at least since the
early 1970s and efforts have been made to construct th:-:� improvements through
local improvement special assessi-nents to benefited lands procedure or through
other private investment alternatives. Accomplishing this objective has met with
only limited success with respect to a small part of the project. The building of
roads, bridges, underpasses and other major highway improvements has not
{ historically been within the capability of private investment and there is no
indication in the light of present economic conditions that private investment
could, in the reasonably foreseeable future, cause the improvements in the Project
to be made.
�1
r Js Jullie
Manager
CITY OFFICES / 8950 EDEN PRAIRIE ROAD / EOEN PRAIRIE, MN 55344-2499 / TELEPHONE (612) 937-2262 .y U
April 9, 1984
The Honorable John Derus, Chairman
Hennepin County Board of Commissioners
A-2300 Government Center
Minneapolis, Minnesota E5487
Dear Chm Derus and Board Members
Enclosed please find one copy of the proposed Tax Increment Financing
Plan for Tax Increment District No. 7 to be considered for approval by the
City Council of the City of Eden Prairie at a hearing of the City Council on
Tuesday April 17,1984.
Please note that the estimated project costs have not changed from those
stated in the original Development Program adopted on September 22, 1981.
The increments accruing to Tax Increment District No. 7 may be used for debt
se on bonds already issued or to be issued, or for project costs.
are invited to attend the public hearing on April 17; the Council
meets starting at 7:30. Any questions or comments may be directed to my
office or to John Frane, Finance Director, at 937-2262
Thank you for your consideration in reviewing this proposal .
since
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6r
(�G-�—
Carl J. lie
City Man er
c: Roger Pauly
John Frane
CITY OFFICES / B950 EDEN PRAIRIE ROAD / EDEN PRAIRIE, MN 55344-2499 / TELEPHONE )612) 937-2262
April 9,1984
Mr. Kenneth Daniels, Chairman of the Board
Joint Independent School District #287
Su`,,,rban Hennepin Technical Center
1c2U Yenium Lane
Mirnflapolis, Minnesota 55441
Dear Glyn Daniels and Board Members
Enclosed please find one copy of the proposed Tax Increment Financing
Plan for Tax Increment District No. 7 to be considered for approval by the
City Council of the City of Eden Prairie at a hearing of the City Council on
Tuesday April 17,1984.
Please note that the estimated project costs have not changed from those
st,-3ted in the original Development Program adopted on September 22, 1981.
lhc, increments accruing to Tax Increment District No. 7 may be used for debt
! r✓ice on bonds already issued or to be issued, or for project costs.
You are invited to attend the public hearing on April 17; the Council
meets starting at 7 :30. Any questions or comments may be directed to my
office or to John Frane, Finance Director, at 937-2262
Thank you for your consideration in reviewing this proposal .
S4JIlie
r
CC
cc: Roger Pauly
John Frane
CITY OFFICES / 8950 EOEN PRAIRIE ROAD / EDEN PRAIRIE, NIN 55344.2499 / TELEPHONE (6121 937-2262 13
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I
1
1
April 9, 1984
Mr. John Lobben , Chm of the Board
I .S. D.272
8100 School Road
Eden Prairie, Minnesota 55344
Dear Chairman Lobben and Board Members
Enclosed please find one copy of the proposed Tax Increment Financing
Plan for Tax Increment District No. 7 to be considered for approval by the
City Council of the City of Eden Prairie at a hearing of the City Council on
Tuesday April 17,1984 .
Please note that the estimated project costs have not changed from those
stated in the original Development Program adopted on September 22, 1981.
The i^crements accruing to Tax Increment District No. 7 may be used for debt
;erv;ce on bonds already issued or to be issued, or for project costs.
'yoi are invited to attend the public hearing on April 17; the Council
meets starting at 7:30. Any questions or comments may be directed to my
office or to John Frane, Finance Director, at 937-2262
Thank you for your consideration in reviewing this proposal .
Sincere
Carl J. J 1 e
City Manage
cc: Roger Pauly
John Frane