08-28-2013 Council Agenda - Laserfiche WebLink

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MAYOR Bill Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 ADMINISTRATOR www.ci.little- canada.nun.us Joel R. Hanson MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: August 23, 2013 RE: Pinetree Pond (TIF 6 -1) Development Agreement & Improvement 13 -08 Attached is the proposed Development Agreement with Masterpiece Homes, Inc. related to the Pinetree Pond project. I still need to obtain final approval from the Developer and City Attorney, but I hope to have that by Wednesday's meeting. Here are the highlights of this agreement: • Developer is paying $100,000 per lot. That amount includes the special assessments to be levied and the cost of landscaping improvements that will be paid for by the Developer. It should be noted that the Developer will likely be over the $1.5 million needed to buy the lots when we consider what they have spent to date plus the amount to be specially assessed. • Developer is responsible for gas and electric services to the project outside the $100,000 per lot. • Assessments (likely at $57,000 per lot) will be levied this fall and repaid over a three year term. (If lots sell, they will be paid at the time of sale.) The interest rate is at 3.75 %. • The agreement will be recorded against each lot and any construction mortgages placed by the Developer will be subordinate to the agreement. • Owners of lots in Pinetree Pond will not be able to object to future improvements to the rear yard areas of the Acosta, Boog, and Brausen properties should they develop in the future. • The interest accrual rate for costs advanced by the Developer was reduced from 6.5% in the original agreement entered into on December 1, 2008 to 4 %. • Each home constructed must have an estimated market value of at least $450,000 the year it is fully valued by Ramsey County.