07-23-08 Council Agenda - Laserfiche WebLink

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in the district. Currently, we project an ending surplus of about $3,000,000. (That assumes values, tax rates, and collections remain constant and that we do not spend any proceeds on other components.) The current cash balance of the district is about $900,000. If we forgave the TIF guarantee on The Villas, the total cash impact would be about $583,000 over the life of the district. However, if the tax rate and /or values rise, that number would decline. Another option that we are looking at is to use excess increment from the Lodge /Garden Terrance to offset some of these costs. This would protect the increment in District 3 -2 while still providing relief to Mr. Sherman. We would like your reaction to this possibility before we do further analysis. • Culvers is close to signing a purchase agreement for Parcel 3. That project should generate a nice increment that would meet plan objectives. • Mr. Sherman is concerned about development on Parcel 2 next to the Village building. As we have discussed, I believe full occupancy of that building will result in a parking shortage, especially if a restaurant occupies a portion of that building. He is willing to clean -up Parcel 2 by adding parking and landscaping while also absorbing the TIF guarantee. I think this is a good outcome to ensure adequate parking is available, the site is improved in terms of appearance, and we are financially whole. • Mr. Sherman would also like to take possession of Parcels 3 (potential Culver's site) and 4 at the time of closing on the Culver's deal, Financially, he is still on the hook for TIF guarantees. He would also be subject to a right of reverter if he fails to perform per the development agreement. On the surface, this seems acceptable. If you agree, I will pursue it with counsel to make sure we are properly protected. • We also talked to him about making another run at US Bank. Initially, he was to contribute $250,000 to aid in the purchase of this site. However, US Bank was not interested. He is attempting to contact them again before Wednesday's meeting to ask, from a realistic perspective, what it would take for them to relocate, thereby freeing up their parcel to allow for better utilization of this area. With our TIF projections and the value of re -sale on the site, I believe we may be able to incent this redevelopment. While we have not done detailed analysis as of yet, your reaction to this possibility is needed. Abdo Report: Here is the report I received from Paul Abdo per our development agreement. Currently we have been in contact with several retailers. So far, Subway and Great Clips have shown the most interest, We have had good talks with the rest but they are waiting on a preliminary design. We have contracted our architect and they are working on a plan that draws on the history of LC and creating a building that will set up a gateway for LC via Rice Street. We should have finalized leases with Great Clips and Subway by the end of the month. If you have any questions, please let me know. REP for Hotel: With Mr. Gagne changing is mind regarding participation in this process, I believe most of you wanted to wait until this site is available before pursuing this project. 5