08-08-2007 Council Agenda - Laserfiche WebLink

Home Browse Search

To date, staff has discussed the following parameters with St. Jude representatives (Cresa Partners): ➢ 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 Si. Jude project. (The parcels contemplated will include the new St. Jude site, Capitol View School, the bakery outlet store, and four mobile homes in Terrace Heights.) The district will utilize the "pay as you go" format whereby St. Jude will advance the funds to finance the agreed upon improvements and then will be repaid from available TIF revenues from the new development, subject to an agreed upon interest factor and the continued available of an adequate TIF revenue stream. A development agreement will need to be created that will govem the responsibilities of each party and provide for the issuance of a TIF Revenue Note to St. Jude to address the terms of repayment. ➢ The City's desired priority for the use of TIF is: 1) TIF District Formation Costs — estimated at $27,000. 2) Utility extensions for the St. Jude project (water main and sanitary sewer). These extensions will avoid the need for a lift station for sanitary sewer and will loop an existing dead -end water main off of Stephanie Court, just to the south of the St. Jude project areas. (These costs are estimated at less than $300,000.) Acquisition of parcels along County Road B2 for open space /road right -of -way to provide for additional lane construction along B2 at such time that Rice Street can accommodate additional left turn movements based on the need identified in the Environmental Assessment Worksheet (EAW). 3) Landscaping improvements along County Road B2 to beautify /screen the area. To fully accomplish this, #2 above must occur to provide us with adequate right -of -way for these improvements. 4) The City will consider the use of TIF for other eligible St. Jude project costs to the extent TIF is available from the first or subsequent phases. The City would prefer to use any other TIF revenues to enable the future acquisition/redevelopment of the Capitol View Learning Center, subject to future expansion by St. Jude into this area. If it is not possible to commit to that at this time, the City will consider additional reimbursement of eligible costs; subject to financial feasibility and further due diligence to document the need for the assistance and to comply with statutory requirements, including the "But For" test. ➢ Staff has requested St. Jude Medical, Inc. to ensure that all references to their headquarters are noted as "Little Canada ". To ensure that the District can be completed in timely fashion to accommodate possible construction by St. Jude, staff recommends we adopt the resolution contained in Attachment 3 at Wednesday's meeting and to also authorize staff to complete the building study and TIF plan preparation.