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rPOM LAPh.1 IN HOFPP�u �� IIUJ LA <br />COUNTRY DRIVE REDEVELOPMENT SITE <br />June 26, 1989 <br />Page 5 <br />6. TO.ISO 1:::05 <br />F. 5 <br />4. DEVELOPER'S FINANCIAL GUARANTY. <br />The developer shall provide a bond, cash, or Letter of <br />Credit to the City in an amount equal to one year's <br />taxes which will be generated from the completed project <br />each <br />will be phase <br />n a an amountesufficientTtosoffsetcthe annualtTIF <br />bond payment for at least one year. The developer's <br />financial guaranty shall be refunded upon completion of <br />the last bond payment for each phase of development. <br />If after reviewing the suggestions listed above, the Commission <br />would like to review an example of a Letter of Intent, BDS will <br />prepare the document and forward it to the Commission. <br />SUMMARY <br />This information has been prepared to provide an overview of the <br />Tax Increment Financing issues and make suggestions for the Letter <br />of Intent as they relate to the Country Drive project. Although <br />it will be possible to gain a good understanding of the overall <br />project once a Letter of Intent has been executed, the project <br />will be subject to modifications as it moves through the process. <br />It is important that the City clearly establish the principals by <br />which it will negotiate any modifications. Standards should be <br />clearly established in the Letter of Intent which the developer <br />will have to meet and, ultimately, financial obligations to the <br />City will be limited to the available increment. <br />PWP /ld <br />Page 33 <br />