03-08-2006 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766-4048 www.ci.little- canada.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: March 3, 2006 RE: Revised Agreements with The Village, LLC MAYOR Bill Blesener COUNCIL Jim LaValle Rick Montour Barbara Allan John Keis ADMINISTRATOR Joel R. Hanson Last August, approved a number of agreements with Sherman Associates relative to the Village of Little Canada portion of our redevelopment project. The closing of this transaction occurred on March 3`d Attached are two agreements that received modifications from those we approved Last August. The first is the Assessment Agreement. This agreement sets a minimum market value for real estate tax purposes relative to the generation of tax increment financing. A blacklined copy of the agreement highlights the changes. The major change relates to the assessed value as of January 2, 2006. It was supposed to be $2,470,000 as of that date However, because the building is still under construction, Ramsey County would not agree to that value amount as of that date In 2007 and going forward, that amount is acceptable to the County. Staff feels this change is acceptable given we have a TIF guarantee that requires the Developer to advance pay any projected TIF shortfalls. With a lower value, we will see less TIF in pay 2007. Therefore, the guarantee will kick in and the Developer will advance pay (pays one year ahead of time) the amount that should have been generated. This same provision was uses last year when the building did not start on time. The other change relates to the Purchase Agreement /Right of Entry. In this case, the agreement was modified to reflect current conditions versus the dates and obligations that were no longer in play. Staff reconunends approval of this document as well.