By Tim Douglass

tdouglass@pctribune.com

Glenwood City Commissioners adopted a Tax Increment Financing (TIF) plan that involves improvements to two buildings in Glenwood owned by Zavadil Limited Partners.  Although the TIF District established contains both parcels and buildings, the plan is to treat both buildings separately, according to Jason Murray, of DDA-David Drown Associates, Inc., who presented the plan to the commission.

The two parcels include one on Minnesota Avenue and the other on Franklin Street in downtown Glenwood.  Murray explained that he was requesting a “redevelopment” TIF District which means the buildings to be improved meet specifications as blighted buildings and meets criteria set out for their improvement and increased value.

Tax Increment Financing (TIF) is a value capture revenue tool that uses taxes on future gains in real estate values to pay for new infrastructure improvements. TIF plans are authorized by state law in nearly all 50 states and begin with the designation of a geographic area as a TIF District. TIF  Districts may be used as a tool to include public infrastructure, land acquisition, relocation, demolition, utilities, debt service and planning costs.

A comparative analysis of estimated market values both with and without the establishment of the TIF District and the use of tax increments was performed and indicated that:

•The increase in estimated value of the proposed development is $4 million;

•The present value of expected tax increments collected over the maximum duration of the TIF is $1,304,605, while the expected market value of the site is $145,496”

•Even if some development other than the proposed development were to occur, the Authority finds that no alternative would occur that would produce a market value increase greater than the $2,695,395.

City Administrator David Iverson told the commission that all criteria for the TIF and improvements have been reviewed and confirmed by the city’s building inspector.

“Anytime a property owner is willing to reinvest in buildings within the community to add value it’s a good thing,” Iverson said.

The resolution establishing the TIF district is just the first step with a legal document coming before the city within 30 to 45 days, according to Murray.

In other business, the city commission:

• Approved the final payment of $11,490  for the beacon replacement at the Glenwood Municipal Airport.

• Approved the Glenwood Fire Department’s purchase of equipment in the amount of $289,817.24.  A FEMA grant of $220,000 was awarded to the department for the purchase.

• Accepted a year-end report (2022) of the lodging tax from the Glenwood Lakes Area Welcome Center.  The city lodging tax raised $60,498 in 2022 and allowable expenses for the Welcome Center operation, website and advertising, there was a reserve of about $11,317 remaining. It was stated in the report. The commission thanked Kay Blauert and Sara Hoffner for the thorough report.  In a related matter, the commission approved permit for the “Magical Christmas in Glenwood Celebration” on December 7,14 and 21.  The commission also met Sara Hoffner, who was hired in July as the new Executive Director of the Glenwood Lakes Area Chamber of Commerce.

• Approved a request from Pope County Auditor/Treasurer Stephanie Rust for Pope County to retain some state funding for voting related needs throughout the cities and townships in the county.  The amount was not large enough when split by cities and townships, but could be used on a county-wide basis to help with voter-needs.  The amount to be split by cities and townships in Pope County was $1,243.86, which would amount to disbursements of $2.99 to $268.14 depending on the number of registered voters in each city or township. The county will use the retained funds for absentee voting administration, mail ballot administration and maintenance costs on the election equipment that is used for all cities and townships, according to a letter from Rust.  

•Heard a report from Widseth Engineering on the condition of cities streets.  Widseth and city public works director Andy Jergenson recently drove all city streets and they were rated 1-5 with 1 being the best condition and 5 the worst.  That information was then compiled into a report with recommendations from Widseth for the city to schedule those streets in the 2-3 range for resurfacing because it is cheaper to resurface those streets rather than letting them deteriorate to poorer conditions.

• Rescheduled the next Glenwood City Commissioner meeting from Oct. 25 to Nov. 2.