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515 Little Canada Road Little Canada, MN 55117 -1600 <br />(651) 484 -2177 / FAX: (651) 484 4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: July 22, 1999 <br />RE: Biagini Office Project <br />DEVELOPMENT AGREEMENT: <br />MAYOR <br />Michael L Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Please find attached a copy of the proposed development agreement between Richard A. Biagini <br />and the City of Little Canada. This will govern the construction of a 30,000 square foot office <br />building and a 12,000 square foot office /warehouse. Some of the highlights of this agreement <br />are as follows: <br />♦ This agreement requires the issuance of taxable tax increment financing bonds to provide <br />us with the funds to address land acquisition and related development costs. (We will be <br />calling for this bond issue at our next Council meeting.) <br />♦ Provides for the sale of the office building site for a total of $1 and the sale of the <br />office /warehouse site at $1 per square foot. (The office /warehouse site was going to be at <br />$1.50 per square foot with a $30,000 allowance for a retaining wall which equates to <br />essentially the same dollar amount as revised.) <br />• The document contains an assessment agreement and a tax increment cash flow guarantee <br />on the part of the developer. <br />• Construction of the office building must be completed by December 31, 1999 and <br />construction of the office /warehouse building must be completed by December 31, 2000 <br />in order to allow for assessment on January 2nd of each succeeding year. Should <br />completion not occur by those dates to allow full assessment, the tax increment guarantee <br />will require a payment on the part of the developer to ensure our cash flow requirements <br />are met. <br />♦ Mr. Biagini will take title to the former Fasciana and Nadeau lots to allow construction of <br />the building at this time (subject to performance of the requirements under the <br />development agreement). The City will be obligated to transfer title on a portion of the <br />Precision Tree property to facilitate parking for the office building by January 1, 2000. <br />Page 42 <br />