6.7. EDSR 01-20-2015
Request for Action
To Item Number
Mayor and City Council 6.7
Agenda Section Meeting Date Prepared by
General BusinessJanuary 20, 2015Jeremy Barnhart, Deputy Director, CODD
Item Description Reviewed by
Coin-Tainer request for reimbursement for tax
abatement application fees
Reviewed by
Action Requested
Consider the request to return the application deposit of $5,000.
Background/Discussion
Coin-Tainer completed an application for tax abatement in September, 2014. Included in that application
was the required $5,000 deposit. As written in the application, the deposit is “used toward the cost of
services provided in the evaluation of financial feasibility and preparation of legal documents and
agreements. Projects that demand professional services in excess of the initial deposit shall be required to
reimburse the City for the additional expenses.”
In November, the applicant withdrew the application, as comments from the Finance Committee were
construed to not be in support. Staff’s work on the Tax Abatement application ceased, with expenses
totaling $3,568.50. These expenses included invoices received from Springsted and publishing costs
already paid.
Per the policy and written application, Coin-Tainer is eligible to receive $1,431.50 in unspent funds
deposited. Coin-Tainer requests the full $5,000 because they feel that they would not have applied for tax
abatement if they had been advised that the EDA would only consider abatement on the incremental
value of the improvement, rather than the value of the entire property. The policy gives the EDA the
flexibility to determine the appropriate abatement amount.
Financial Impact
$3,568.50
Attachments
None
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