Transcript of end of Council/School Board working session Randy Meyer: The one thing we were hit pretty hard with this year was the million-two in abatements and I believe that had to do with the five million that was reimbursed to the redevelopments down at Pentagon Park. Should we expect more of that happening? I'm a little concerned too with the 26 year TIF district. That's pretty painful long term, and also those properties were reduced in value by about 70%, which raises some real concerns for me personally. Ann Swenson: Well, our Southdale TIF district is done this year. Jim Hovland: Centennial Lakes one you mean? Ann Swenson: Uh huh. We've started a new one in Pentagon Park, but since... Jim Hovland: He was alluding to Pentagon Park. We set up a TIF district there, but we haven't used any of it yet. Randy Meyer: Well, we were hit with abatements of a million-two and also those properties were reduced in value on the books by 70%, so that raises some concerns. Ann Swenson: Well, they were probably reduced... [indecipherable] Jim Hovland: [indecipherable] Bill Neuendorf: I can speak to that a little bit. So our tax assessor office has full detail on that, but those properties had been in tax appeal for a couple years, when they went through the foreclosure and the mess there in 2008, 2009. So, that was finally settled about a year and a half ago, and the valuation dropped for everybody, so it hit the schools, it hit the city, it hit the county.... Randy Meyer: But it went down by 70%, so thats... Ann Swenson: Right, but we didn't lower it by 70%. Randy Meyer: Yes, you facilitated the lowering of it with your appraisals. Bill Neuendorf: Right, so... Randy Meyer: Six of them are valued at $1,000 right now and I don't understand that. Bill Neuendorf: So, the tax assessor had full information. I'm just the messenger on this one. Kevin Staunton: And there is a process for appealing that too. Bill Neuendorf: They had appealed it, they went back and forth, they had their attorneys, we had our attorneys, and that's the place where they settled. That's the short story. I don't have all the details. But that is the baseline for the property [indecipherable] when they went into foreclosure, they lost tenants, they were at excessively high vacancies and the appeals process recognized that. So that's a hit for everybody.

Randy Meyer: My concern is the 26 year tax increment financing. It has a longterm affect, about $30-50 million for the school district. Just want you guys to be careful when you're establishing TIF districts to understand the school district's impact of that. Ann Swenson: OK. The one that is decertifying, though, is the Southdale one, so... Randy Meyer: That's not related. Ann Swenson: But that comes back to you as an increase. Bill Neuendorf: It's actually Centennial Lakes. And so, ironically, the majority of that is in Richfield. Meeting ended a few seconds later.