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Mayor & City Council <br />July 9, 1999 <br />Page 3 <br />the time the development agreement is executed. The letter of credit will also provide <br />reimbursement to the City for the costs associated with site assembly, formation of the <br />TIF District, legal, planning, fiscal, City staff time, appraisals, other related costs and <br />relocation benefits, if any. <br />♦ The developer will plat the site in compliance with City zoning and subdivision <br />requirements and a final development plan prepared by January 1, 2000. <br />♦ We must vest title in the project to the developer by April 1, 2000. Construction on the <br />project shall start no later than May 15, 2000 and be completed by no later than <br />December 21, 2000. <br />♦ It is anticipated that 7.5 years of tax increment collection will be needed to fund the <br />proposed project. (The actual amount to be determined when final project costs are <br />known.) <br />• Should property tax changes occur which reduce the amount of increment collected, the <br />City's repayment obligations will be offset by the corresponding reduction (i.e., addresses <br />further compression of class rates by legislature). <br />This agreement is being prepared by Briggs & Morgan. The City Attorney will also be involved <br />in its review. <br />Extension of Moratorium: <br />Attached is correspondence from the City Attorney extending the moratorium on the project <br />area. I would recommend adoption of this ordinance extending the moratorium subject to <br />execution of the development agreement by RJ Marco Construction, Inc. The current <br />moratorium expires on July 20th and will need to be acted upon at this meeting in order that we <br />can publish it to take effect without lapse. <br />Authorizing the use of eminent domain for 2600 Rice Street: <br />The City Attorney also recommends that we adopt the attached resolution initiating acquisition <br />for 2600 Rice Street. It was his opinion that this resolution will not trigger the application of <br />relocation benefits to any of the tenants should other methods of acquisition prove to be <br />successful. The City Attorney can comment on this resolution at Wednesday's meeting should <br />you have questions. <br />Enclosure <br />cc: Jack Lowry, RJ Marco <br />PAGE 170 <br />