09-12-2007 Council Agenda - Laserfiche WebLink

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Way StIZ C°anaa MAYOR Bitl Blesener COUNCIL Rick Montour Barbara Allan John Keis Michael McGraw 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www.ctlittle-canada.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel R. Hanson, City Administrator DATE: September 7, 2007 RE: Updated St. Jude TIF Parameters Staff has continued to meet with Cresa Partners regarding the St Jude project on B2 and the use of tax increment financing. Attached is the latest TIF run that yields a present value of $1,755,000 for the Phase I project. It also sounds like the timeline for Phase II is slipping and may not occur for 10 to 12 years. We have not revised projections based on the longer timeline, but suffice it to say that planning for the receipt of TIF proceeds from a project that far out would be highly speculative and should not plan on the use of these dollars for any current or expected costs, except those directly tied to the Phase II project. I will provide the listing prepared at the end of July and update you on the current status of discussion. That listing is as follows: ➢ The City will pursue the creation of TIF District 5 -1 as a Renewal & Renovation District pursuant to Minnesota Statutes. To do so requires the inclusion of other parcels into the District's boundaries. These parcels have redevelopment needs that the City would like to resolve in conjunction with the St. Jude project. Update: The process to create the TIF district is proceeding. The major obstacle we have encountered is the reluctance by Capitol View to grant our inspector access to the building to complete the inspections needed to verify standards needed to create a "renewal and renovation district ". Based on a phone call I received on Friday, it sounds like they want to draft an agreement that would ensure we would not acquire their property via eminent domain (I said that could be acceptable from a total taking standpoint, but I would not preclude a partial taking that could be necessary for road or utility improvements.), they wanted our agreement not to require the to install fire suppression sprinklers in their building (I said we would not require them as a by product of the St. Jude project or any associated utility extensions but we would not agree to a blanket exclusion should they make building improvements that trigger the applicable fire /building