05-14-08 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL May 14, 2008 WITH THAT AGREEMENT TO INCLUDE TIMELINES, GOALS, AND PERFORMANCE STANDARDS AS DISCUSSED The foregoing resolution was duly seconded by Allan. Ayes (4). Nays (0). Resolution declared adopted. ST. JUDE The City Administrator reviewed the proposed St. Jude Development DEVELOPMENT Agreement relative to Tax Increment Financing and the extension of AGREEMENT the southwest trunk water main improvements for the area. The Administrator briefly highlighted key elements in the agreements. Those include St. Jude's development of a 170,000 square foot addition with a minimum assessed value of $19 million. St. Jude will provide TIF guarantees to meet debt service and contribute up to $650,000 to help cover acquisition costs for future street widening should TIF proceeds be inadequate. These improvements will be made in four phases and are subject to various timelines outlined in the agreement. Phase I will be water and sanitary sewer utility improvements on or adjacent to St. Jude's property to be completed by August 1, 2008. Phase II will be certain landscape improvements on or adjacent to the St. Jude property to be completed by May 31, 2009. Phase III will be the acquisition and demolition of four mobilehomes and the bakery at Rice Street and County Road B-2 to be completed within 24 months of the County commencing the widening of Rice Street. Phase IV involves the consriuction of a left turn lane, sidewalks, and landscaping along County Road B-2 at Rice Street by 2011. The Administrator noted that if the City expends dollars during Phase III, the agreement provides that the City can recover those dollars from excess tax increment dollars before St. Jude would recover their costs. The agreement notes that there could be shared repayments of costs between the City and St. Jude, however, the City is not obligated to consider it. The Administrator felt that the proposed Development Agreement was more unique than most. He noted that the City is providing no direct TIF assistance to St. Jude. The water main improvements that will be constructed will be of benefit to the entire area as will the sanitary sewer improvements. The Administrator pointed out that Briggs & Morgan has served as the City's legal representative in the drafting of this agreement, and has recommended approval as proposed. Ms. Allan inrioduced the following resolution and moved its adoption: RESOL UTION NO. 2008-S-I24 -APPROVING THE ST. JUDE DEVELOPMENT AGREEMENT AS RECOMMENDED SY THE 10