02-14-2001 Council Agenda - Laserfiche WebLink

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4i �d7? 9W% ceasehe 515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 Email: cityhall @ci.little- canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: February 8, 2001 RE: Good Year Project MAYOR Michael L Fahey COUNCIL, Beverly Scalze Jint Lal'alle Matt Anderson Rick Montour ADMINISTRATOR Joel R. Hanson Two action items are required to complete documentation on the Good Year TIF project. The first is the second amendment to the Development Agreement with Little Canada North, LLC. This amendment will provide for additional reimbursement to the Developer for soil correction costs above the initial estimate of $125,000. (The initial $125,000 was funded by the Developer paying $30,000 and the remaining $95,000 was covered by a 0% Loan from Ramsey County that is to be repaid with TIF after the Developer has received reimbursement for their eligible costs.) The additional $19,941 was incurred to provide for an additional three foot of subcutting and fill to correct soil problems not identified in the original soils report. I have been provided with a copy of the invoice documenting this amount, The revised development agreement also enacts a TIF guarantee. This is normally not required for a pay - as- you -go district. However, I felt it is warranted here due to potential for dramatic changes in the property tax system and due to the fact we have to repay the County after the Developer has been reimbursed. This will protect the City to ensure we will have the funds to repay the Developer and the County. The TIF Note also needs to be revised. In addition to the soil correction costs of $19,941 we are obligated under the terms of our original agreement to reimburse the Developer for land acquisition costs above $345,000. The Developer had to pay Paul Anderson an additional $10,000 to address an encroachment issue and to gain the City a storm sewer easement for an existing line. The Developer discovered (these issues when Mr. Anderson completed the sale of the mini - storage property to another party.) The revised TIF note amount is $148,616. (This is an increase of $29,941 from the amount approved in September. The City has also benefited by issuing the note as of February I, 2001. We saved capitalized interest from September 15th until that date. Also, the interest rate on the note has dropped from 11% to 10% due to the recent interest rate reductions implemented by the Federal Reserve. Therefore, I recommend the 2nd Amendment to the Development Agreement and TIF Note R -1 be approved as presented. cc: RJ Marco Page 25