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he very aggressive with the developer paying for some lots before breaking ground (using the <br />equity already contributed) and then the balance of the lots over a short period to minimize <br />carrying costs. (The exact details have not been developed at this time, but would need to tie out <br />closely to what is depicted on the attached spreadsheet.) The spreadsheet shows that we should <br />recover our costs within 10 years of the project moving forward versus the district's life of 25 <br />years. TIF is essentially providing the reimbursement of costs over what the market value per lot <br />is ($100,000). <br />In the meantime, we have Masterpiece's equity at the rate of 50% of project costs. When the <br />development is ready to move forward, we would create a new development agreement that <br />spells out the details of the final transaction. <br />Staff recommends the Council authorize the amendment of the Development Agreement with <br />Masterpiece Homes, Inc. to allow the inclusion of 2945 and 2959 LaBore Road as "allowable <br />costs" and to authorize the issuance of mortgage financing for 50% of the allowable costs. <br />Finally, we would need to authorize an interfund loan from the Water & Sewer Capital <br />Replacement Account (Fund #604) to finance our participation. These costs would ultimately be <br />recoverable through Tax Increment Financing. <br />cc: Gordie Howe, Masterpiece Homes, Inc. <br />2 <br />