City council moving to workshop, meeting schedule

For monthly meetings, the Prairie City City Council is starting a new format for discussion. Approved at the Jan. 9 regular meeting, the council will meet the week prior, typically the first Wednesday of the month, for a workshop session to hash out any questions before taking action at the regular meetings.

“The workshop is, as a council we are going to review the agenda and discuss everything that is on it and then we’ll set our regular council meeting where we can approve everything,” mayor Chad Alleger said. “For the workshop, it will give council more time to deliberate and discuss items and do research. It also gives city staff a week to prepare.”

A structure used by several surrounding communities, this will be the first time for Prairie City to schedule two meetings regularly. The meeting will be open to the public but public comments and questions will not be taken during the workshop.

“It is something new,” Alleger said. “We’re going to try this to see if it works.”

The first workshop will be at 6 p.m. Feb. 6 with the regular monthly council meeting following at 6 p.m. Feb. 13. A budget workshop was also scheduled for the week prior at 6 p.m. Jan. 30.

After a lengthy discussion outlining how tax increment financing (TIF) funding works and exploring the impact on the proposed new housing development on its neighbors and the city, the council set the date for a public hearing for the Urban Renewal Plan Amendment. In order to secure TIF funding, the Urban Renewal Plan must be amended to include the land housing the development. The land, which was presented to the council by Prairie Heritage Development, LLC at the December meeting, is located south of Prairie City adjacent to Kayla Lane and both schools.

“I will be the first to tell you I know little to nothing about TIF,” councilman John Lee said. “I want to be assured where we are at on this.”

City administrator Joe Bartello said as far as incentives from the city, TIF is the only program available for the developer. He continued the TIF funds are not a loan, but tax revenue generated from the development project given to the developer for infrastructure costs. The developers are requesting $750,000 in TIF funds over 15 years for the project.

“All of the risk is on the developer,” Alleger said.

He continued, if none of the lots sell and no taxes are generated, the developer is out the funds. Bartello took a different approach and spoke about if the homes are built at a higher than anticipated cost and generated more tax dollars than estimated.

“We would still only contribute back to him the $750,000. If there is excess, we’re only going up to $750,000 or actual costs,” Bartello said.

Following the discussion, the council also agreed to pass a resolution expressing intent to enter into a development agreement and provide economic development support to Prairie Heritage Development. The resolution does not bind the city to any agreements or funding but is a letter of support used by the developer for other financial needs.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com