09/11/1995 Council Packet - Laserfiche WebLink

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pay off the assessments and to write down a portion of the land costs. The remaining $74,000, plus $15,000 in carrying costs, would be on a pay-as-you-go basis. Mr. Wessel explained that the subsidy was approximately 17% of the total project cost, and would take approximately 5 years to recoup. EDA Member Elliott moved to adopt Resolution 95-09. EDA Member Bergeson seconded the motion. Motion passed unanimously. CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF LINO LAKES AND MAG -CON, INC. Mr. Wessel explained the details of the development agreement with Mag -Con. Mr. Batty added that this agreement was typical of others the city had entered into. He explained that assessments would be paid upfront, and that it would take 4 1/2 to 5 years for payback because the assessed value from the county was lower than expected. EDA Member Kuether questioned why the county would value the project lower than the city and developer had agreed to. Mr. Batty responded that the county has a professional obligation to value a project according to their criteria and this was the first time they hadn't come in at what the city had estimated. The value is only a concern if it dropped 'to a level where the city might not get reimbursed, and that is not the case in this project. Mr. Schumacher asked how the repayment was to be split. Mr. Batty explained that Mag -Con would be reimbursed first, then the city. EDA Member Kuether moved to approve the development contract. EDA Member Elliott seconded the motion. Motion passed unanimously. ADJOURNMENT EDA Member Elliott moved to adjourn. EDA Member Bergeson seconded the motion. Meeting adjourned at 6:21 p.m.