08-03-05 Council Special Minutes

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that by amending the construction completion date, we did not relieve the developer of his obligation for tax increment shortfalls. The tax increment guarantee for 2005 is $18,406 and for 2006 and beyond is $37,279. The developer's attorney, Sue Fauvre, acknowledged Che responsibility to make these guaranteed payments. She also reported that the developer has reduced the price on the townhomes to increase sales. Currently 28 of the 45 units are sold. LaValle introduced Che following resolution and moved its adoption: RESOLUTION NO. 2007-8-10 -APPROVING THE SECOND AMENDMENT TD THE VILLAS DEVELOPMENT AGREEMENT AND AUTHORIZING THE PRESIDENT AND SECRETARY TO EXECUTE ON BEHALF OF THE ECONOMIC DEVELOPMENT AUTHORITY The foregoing resolution was duly seconded by Allan. Ayes (5). Nays (0). Resolution declared adopted. The next document reviewed was the First Amendment to the Development Agreement for The Village at Little Canada. Again, the construction schedule was revised whereby all commercial buildings that were to be completed by the end of 2005 have been extended. Parcel One will now be required to be completed by April 30, 2006. One of Parcels Two, Three, or Four, at the developer's option, must be completed by December 31, 2006. The remaining two parcels may be completed by December 31, 2007. The developer is not being relieved of TIF guarantee commitments. The developer presented a check in the amount of $79,708 as payment for the 2005 shortfall. The annual guarantee, with all buildings completed, equals $79,708. Another change Co this agreement involves retaining more of the Letter of Credit associated with the completion of Parcels One through Four. The new provisions provide fora $100,000 reduction in the $350,000 Letter of Credit when the developer substantially completes Parcel One improvements. An additional $50,000 reduction for each of Parcels Two, Three, and Four will also be provided for upon substantial completion. When all four parcels are complete, the entire Letter of Credit will be returned to the developer. This action provides the City with additional financial surety relative to Parcel Two and the cross easement for parking that the developer is requesting should the developer not complete the required improvements.