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*You would like to pursue Livable Communities funds to <br />supplement/enhance the project. These funds are not essential to the <br />repayment of the $2,000,000. (Correct, except Scenario 3 may have implications to it) <br />*If Livable Communities funds are pursued, the project will not start <br />until 2003. (Correct) <br />*ft will take a few weeks for us to work through the initial details <br />to allow us to make the determination as to a more precise structure for our <br />financial relationship. (Correct) <br />*You are pursuing the application of Ramsey County HOME funds for <br />this project. (Scenario 3 would be pursing the application and like the Livable Communities funds are looking <br />to supplement /enhance the project and may not be essential. We are applying for it in that it is due very soon <br />whether we will use it or not is yet to be determined) <br />*MetroPlains is committed to working with the City from a team <br />approach to make the project work for both of us. (Correct) <br />If I misstated any of the above points, please correct them for me and <br />return this afternoon. I would also like you to provide me with brief <br />answers to the following questions: <br />1 Are you considering the possible use of tax exempt financing for <br />this project through a state bond. Yes or No and Why or Why Not. (See the table at the beginning for the three (3) <br />Financing Scenarios we are looking at. Scenario 1 is no, Scenario 2 is no and Scenario 3 is yes) <br />2. In you plan to repay the City for its land costs (assuming <br />feasibility to do so) are you contemplating a short term reimbursement (Pay <br />As You Go - PAYG concept whereby we are reimbursed early on and then a TIF <br />note is issued to you with future increments (to the extent they are <br />available) will reimburse you; or do we recover our funds over a longer <br />period (life of TIF district) through TIF proceeds and whatever other income <br />streams can be brought to bear? (We would like to explore both a pay as you go and a city bonding. We also <br />understand the city would like reimbursement sooner vs. later and would work with the city's consultant and <br />administrator to best determine how that would occur) <br />3. At the point you reach a preliminary conclusion as to the <br />viability of the City recovering its land costs, would your firm then <br />guarantee that repayment in the preliminary development agreement? (We see the preliminary development <br />agreement being executed now and within 60 to 90 days a Development Agreement being executed. At the point <br />of the development agreement execution the guarantee could be firmly stated. This allows for the analysis of the <br />3 scenarios and other due diligence items to be executed and a true development scenario to be stated.) <br />Feel free to add any other pertinent information you feel I should present <br />to the City Council. <br />Joel Hanson <br />City Administrator <br />(651) 766 -4040 <br />Page 3 <br />