04-26-2000 Council Agenda - Laserfiche WebLink

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MAYOR Michael I. Fahey COUNCIL Beverly Scaize Jim LaVaile Steve Morelan Bob Pedersen 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson Email: cityhall @ci.little- canada.mn.us MEMORANDUM TO: Michael Fahey and City Council Members FROM: Joel Hanson, City Administrator DATE: April 21, 2000 RE: Park Place Agreements Attached are two separate development agreements relative to the Park Place Project being undertaken by Masterpiece Homes. The first agreement deals with the public improvements to be constructed on the property. It is the same format we have used in the past. The second agreement is for the pay -as- you -go (PAYG) tax increment component. It was drafted by Briggs and Morgan. Key highlight of the PAYG agreement are as follows: • Developer is eligible for $189,680 in reimbursement. ($174,680 for land write -down and $15,000 for the advancement of City's expenses. • Developer will collect increment over a 7 year period starting in 2003. • The term of TIF repayment will be extended to fully reimburse the Developer, subject to the District's duration. • Interest will be payable on the note at a maximum rate of 9 %z% per annum. • Developer will be paid 95% of TIF income being generated over this period. • Developer has indicated the value of the units to be constructed are higher than initially anticipated. I have modified my tax increment projection accordingly and used the reduced class rates proposed for 2001. The project still indicates hill repayment within seven years. (See attached speadsheet) Both agreements will be in final form by Wednesday's meeting. I recommend adoption of these agreements, subject to any modifications and comments by the City Attorney. Should you have any comments or questions regarding these agreements, please let me know. CC: Gordie Howe, Masterpiece Homes H:VessicaJ \Corresp\2000 \Park Place Memo.doc Page 198