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AGENDA ITEM 4 <br />STAFF ORIGINATOR: Mary Alice Divine <br />DATE: 03/12/01 <br />TOPIC: Consideration of the Contract for Private <br />Development between Lino Lakes EDA and Summit <br />Fire Protection <br />VOTE REQUIRED: 3/5 <br />BACKGROUND: <br />This development contract outlines the conditions for public assistance to <br />Summit Fire Protection for the construction of a 30,076-square foot facility on <br />five acres on the G.M. Development property in the Apollo Business Center (see <br />attached map). The proposed facility will have a minimum market value of <br />$1,615,000 for an estimated total of $73,000 in annual taxes. <br />This agreement is based on a total TIF subsidy of $217,059. It removes the <br />assessments of $87,780 upfront. The remaining pay-as-you-go TIF amounts to <br />$129,279 for assistance with land write down and return of escrow. The city will <br />be reimbursed first for the assessments from the available tax increment, and <br />then the developer will receive the remaining increment. Estimated total payback <br />isin2007. <br />This project is in TIF District 1-9, which requires a 10% local contribution <br />($23,496). 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 />Summit Fire Protection <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />