06-12-2013 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 w ww.ci.1 ittle -ca nada. Animus MEMORANDUM TO: Mayor Blcsener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: June 7, 2013 RE: Pinetree Pond Development Agreement MAYOR 13111 l3lesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss ADMINISTRATOR Joel R. Hanson "I'he City Attorney's Office is the process of preparing the Pinetree Pond Development Agreement. I am hopeful this will be ready for execution at Wednesday's meeting. Ilere are some of the key highlights of this agreement: • The Developer will be paying $100,000 for each lot in the subdivision. • The City will specially assess the costs of public improvements and street lights against the 15 lots in the subdivision. The principal costs of the assessments for each lot will be part of the $100,000. Interest that accrues on the assessments is above the $100,000 amount. • The special assessments will be levied this year with collection starting next year. They will be fully due and payable as each lot sells with all assessments due and payable by 12/31/15. The interest rate will be 3.75 %. • The Developer will handle landscaping for the project. An allowance of up to $100,000 will he provided as part of the developer's contribution toward the $100,000 per lot. The developer will have to provide appropriate documentation of expenditures in this area. • The developer will be responsible for providing gas and electric to the subdivision at his cost. This will not count toward the $100,000 per lot cost. • The developer will assure that each house constructed within Pinetree Pond will have an estimated market value as determined by Ramsey County of at least $450,000 once assessed at full /completed value. If the value is less than this amount, the developer will be responsible for a cash payment to make up any deficiency in TIP receipts until costs advanced as part of the TIP district are retired. Once the developer achieves the minimum value, he will be relieved from any further responsibility should values drop in future years.