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MAYOR <br />Michael L Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Matt Anderson <br />Rick Montour <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />Email: cityhail @ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: August 17, 2001 <br />RE: Development Agreement — Country Drive Investors, LLC <br />Attached is the draft Development Agreement and Purchase Agreement with Country <br />Drive Investments, LLC (R. J. Marco) for the redevelopment site on Country Drive. This <br />draft is the redlined copy prepared by the developer's attorney. <br />The major changes in this Development Agreement as compared with the previous <br />agreement with RRB, LLC are as follows: <br />• Purchase price of land increased from $1.00 per square foot to $2.50 per square <br />foot (this generates us $110,000 additional revenue over the previous agreement <br />on the front end). <br />♦ The TIF guarantee has been lowered from approximately $20,000 to $13,600. <br />This is due to the changes in class rates and the projected impact on tax rates. <br />Combined with a higher purchase price the transaction still works for us <br />financially. <br />♦ The closing date is anticipated to be August 31, 2001. <br />• Construction will start this fall and be substantially completed by December 31 <br />(please note that if the building is not fully completed by that date, the TIF <br />guarantee will reimburse us for the loss of increment associated with less than full <br />assessed value). <br />Page 42 <br />