07-14-1999 Council Agenda - Laserfiche WebLink

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Mayor & City Council July 9, 1999 Page 2 Council direct the City Planner to prepare an ordinance amendment creating the B -4 zoning district for action in the August planning cycle. ♦ 2600 & 2616 Rice Street would be included within the project at a minimum. 2620 Rice Street and the north 50 feet of the property immediately south of 2600 Rice Street are to be included unless the developer can demonstrate that it is not economically feasible to do so. This would require Council approval to delete these parcels from the project. ♦ The developer will be responsible for the first $345,000 of land acquisition costs associated with the project's parcels. Land acquisition costs are defined to mean the costs in acquiring the development property, including the purchase price and /or condemnation awards or judgment paid by the City for the development property, costs incurred in establishing good title to the development property, and any applicable relocation costs paid in connection with any condemnation of the development property. All costs the developers would have normally borne in evaluating the site and developing their project are not subject to reimbursement under the tax increment financing program. ♦ The developer will finance any costs above the $345,000 acquisition amount. The developer will be eligible to recover those costs through a "pay as you go" tax increment note. ♦ The interest to be accrued on the tax increment note will be 1.5% above the stated prime lending rate at US National Bank Association on the date the note is to be issued. (Currently at 8 %.) ♦ If the developer is unable to acquire the project site by a specified date, the City will assist with acquisition including the possible use of eminent domain. • Should the developer acquire the parcels, they will need to ensure that the City is protected from any and all claims by the former property including but not limited to those arising from application of the Uniform Acquisition and Relocation Act. • City will initiate the process to amend the Rice Street /Little Canada Road Redevelopment TIF District #3 -2. We are contemplating this will be completed by the end of September. ♦ The developer will be responsible for performing all due diligence to ensure the project is feasible on the proposed site. The City will cooperate to gain access to the site for the purpose of conducting inspections, if necessary. • The developer will secure its financial commitment with an irrevocable letter of credit in the amount of $525,000. (This amount can be reduced by an amount equal to the price they paid for any parcel they acquire in the project area.) This will need to received at PAGE 169