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for the assessments from the available tax increment, and then the developer will receive <br />the remaining increment. Estimated total payback is in 2007. <br />This project is in TIF District 1-9, which requires a 10% local contribution ($23,496). It <br />is the City's intent to apply the interest lost on the assessments that were deferred until <br />development occurred as the local contribution. <br />EDA Member Reinert moved to approve the contract for private development between <br />Lino Lakes EDA and Summit Fire Protection, contingent upon final approval of the <br />project by the City Council. EDA Member Dahl seconded the motion. Motion passed <br />unanimously. <br />CONSIDERATION OF RESOLUTION NO. 01— 02, DECLARING DEFAULT <br />AND TERMINATING DEVELOPMENT AGREEMENT, H&L MESABI <br />M. Divine advised on January 24, 2000, the EDA approved a Contract for Private <br />Development with H&L Mesabi for $110,200. The contract required H&L Mesabi to <br />complete the construction of its facility by December 31, 2000. Since the approval of that <br />agreement, the company, which is based in Hibbing, Minnesota, had some setbacks that <br />changed the outlook for the construction of this metro area facility. <br />Because H&L Mesabi has not begun construction of the building in the Apollo Business <br />Center, the company is in default of its development agreement. The president of the <br />company was sent a notification that he had 30 days to cure the default by providing <br />evidence of his intent to complete the facility. He selected not to cure the default. <br />EDA Member O'Donnell stated the City had agreed to provide TIF. He asked if there has <br />been any waiving of assessments to date. Ms. Divine advised the City Council will be <br />terminating the assessment agreement. Terminating the development agreement will not <br />carry any penalties for the city. An escrow fund did provide for all of the City's <br />expenses. <br />EDA Member Dahl moved to adopt Resolution No. 01 — 02, as presented. EDA Member <br />O'Donnell seconded the motion. Motion passed unanimously. <br />ADJOURNMENT <br />EDA Member Dahl moved to adjourn. EDA Member O'Donnell seconded the motion. <br />Motion passed unanimously. <br />Meeting adjourned at 6:15 p.m. <br />Transcribed by: <br />Kim Points <br />3 <br />