07-25-2001 Council Agenda - Laserfiche WebLink

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and evidence of payment. City's money can only be used on TIF eligible expenses such as soil correction, footings, parking, landscaping, etc. The City's $500,000 are to be secured in an equity position with a chance for recovery upon sale of the property if funds are available to do so. The concept we have discusses involves the Developer keeping the first $400,000 of profit. The City would get the next $100,000. Anything over that would be split 75/25 in favor of the City. (Your thoughts on how to ensure we document and account for the calculation of profit would be useful.) • The Developer will need to seek zoning (PUD) approvals. Application for same must be made by September 24, 2001. Developer to be responsible for all associated costs. • Developer also to seek approval of design standards for new building. Developer shall pay for all permits and fees associated with the development including but not limited to park charge (with land value of $5.00 per square foot), building permit, WAC, SAC, Metro SAC, Ramsey/Washington Metro Watershed, etc. • The City will expect the Developer to maximize development of the site (estimate of 33,000 square feet) while ensuring the development is of high quality and aesthetically appealing. • Developer must give a final determination of intent to proceed (come up with something stronger than that if you can) by November 1st, 2001. If Developer should chose not to proceed at that time, they will provide the City with copies of all documents, drawings, surveys, title work, soils and environmental analysis, etc., related to the project. Said materials will be provided at no cost to the City and within 10 days of the decision not to proceed. 4• A quit claim deed releasing any interest the developer may have in the property must be furnished upon decision not to proceed. The City is to have no further responsibility or obligation to the Develop in this event. • The agreement needs to include a provision for Phase II of the Development. This would encompass the Venetian, Rutzick, and Cardinal property. Without having the benefit of the new laws impacting TIF, our goal is to keep the window of opportunity open as long as possible with the hope of putting together a project for that corner. The Developer's obligations need to be very broad (non - specific) and without penalty provisions. Ideally, the start/completion dates should be out as far as possible while still complying with the new laws. We also want to ensure Phase II is assignable to another developer without jeopardizing the base deal. + This agreement is to be assignable to another party with the written approval of the City. This agreement may be amended in writing only and upon execution of both parties. This constitutes the bulk of our discussions with the Developer. As always, please address any other issues that are appropriate. I could use a copy for review ASAP. I would like to have this finalized by Friday if possible. Thanks for your help. cc: Mayor & City Council Paul Tucci Rusty Fifield PAGE 84