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AGENDA ITEM 3 <br />STAFF ORIGINATOR: Brian Wessel <br />DATE: 6/23/97 <br />TOPIC: Consideration of Contract for Private Development <br />between Lino Lakes EDA and Northern Development, <br />LLC (GNW Machine) <br />BACKGROUND: <br />This development agreement outlines the conditions for public assistance to <br />Northern Development, LLC., which is locating on 4.2 acres in the Clearwater Creek <br />Development Center. Northern Development plans to house GNW Machine and <br />Uptec Engineering, and lease 9,000 square feet to Prime Yield, a precision parts <br />manufacturer. <br />In this agreement the EDA agrees to reimburse the developer 12% of the project <br />costs for a total of $197,737 towards the cost of the land and special assessments. <br />A total of $120,142 for assessments and administrative fees will be presented <br />"upfront" and the remaining $77,595 will be reimbursed over time from available tax <br />increment. Estimated payback is 3 1/2 years. <br />The agreement also gives the city the right to preapprove any tenants that will be <br />occupying the building to ensure compliance with zoning and TIF regulations. <br />OPTIONS: <br />1. Approve the development agreement between the EDA and Northern <br />Development, LLC <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />