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STAFF ORIGINATOR: <br />DATE: <br />TOPIC: <br />VOTE REQUIRED: <br />AGENDA ITEM 4 <br />Mary Alice Divine <br />8/14/00 <br />Consideration of the Contract for Private <br />Development between Lino Lakes EDA and <br />Marmon/Keystone <br />3/5 <br />BACKGROUND: <br />This development contract outlines the conditions for public assistance to <br />Marmon/Keystone for the construction of an 83,000 square foot facility on 8 <br />acres on the G.M. Development property in the Apollo Business Center (see <br />attached map). The total minimum market value (MMV) of the completed project <br />will be $3,152,600. <br />In this agreement, the city agrees to provide tax increment financing totaling <br />$322,242, which amounts to approximately 10% of the MMV. The agreement <br />removes the assessments of $139,839 upfront, plus a $5,000 escrow, which will <br />be returned to the company when the building is complete. The remaining pay- <br />as-you-go TIF amounts to $177,403. It will be used to assist with the cost of the <br />land, except for $3,000, which will be used to assist with maintenance of the <br />native landscaping on the site. The city will be reimbursed first for the <br />assessments and then the developer will receive the remaining increment. <br />Estimated payback is in December 2005. <br />This project is in TIF District 1-9, which requires a 10% local contribution <br />($38,994). It is the city's intent to apply the interest lost on the assessments that <br />were deferred until development occurred as the local contribution. <br />OPTIONS: <br />1. Approve the contract for private development between Lino Lakes EDA and <br />Marmon/Keystone <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />