05-14-08 Council Agenda - Laserfiche WebLink

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TO: MEMORANDUM City of Little Canada: Council Members and Joel Hanson FROM: Jenny Boulton DATE: May 9, 2008 RE: Development Agreement with St. Jude Medical, Inc. Articles I, II, V and VI are fairly standard provisions found in most tax increment development agreements. The following is a summary of the substantive provisions of the Development Agreement with St. Jude Medical, Inc. in Articles III and IV. The City agrees to construct public improvements in three phases: Phase I will be water and sanitary sewer utility infrastructure improvements on or adjacent to St. Jude's property, including a looped 12" water main on St. Jude's property. Phase I is to be completed by August 1, 2008 and will cost approximately $684,390; Phase II will be certain landscape improvements (within or immediately adjacent to public ways) to be undertaken by the City on or adjacent to St. Jude's property. Phase II is to be completed by May 31, 2009 and the landscaping improvements (a portion of which will be completed as part of Phase III) will cost approximately $100,000; Phase III will be the acquisition and demolition of improved property located at 2404 Rice Street, 93 County Road B2 W and 2442 Rice Street, Lots A, B, C, and D (bakery and 4 residential trailers), certain additional landscaping improvements and completing a 12 -inch water main loop along County Road B2. Phase III is to be completed within 24 months of the County commencing street - widening improvements to Rice Street at its intersection with County Road B2 and will cost approximately $1,085,000 for acquisition and demolition and approximately $60,000 for the water main looping. The City and St. Jude will coordinate construction of the public improvements by the City and the approximately 170,000 square foot office building and medical device research and development facility by St. Jude and each have the opportunity to review the other's construction plans (which has already occurred). The City will use proceeds of the City's General Obligation Bonds, Series 2008A and approximately $650,000 to be contributed by St. Jude to construct the various phases of public improvements. St. Jude will agree to a minimum market value for its property of $19,000,000 and guaranty any shortfall in tax increments if the amount received by the City is less than $70,402 between February 1, 2010 and February 1, 2011 or is less than $167,666 in any year between 2175326v2