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AGENDA ITEM 4 <br />STAFF ORIGINATOR: Brian Wessel <br />DATE: 10/13/97 <br />TOPIC: Consideration of the Contract for Private <br />Development between Lino Lakes EDA and Rice <br />Industries, Inc. <br />BACKGROUND: <br />This development contract between the EDA and Rice Industries outlines the <br />conditions for public assistance. At the time of the proposal, the parcel of land in <br />the Apollo Business Park had been surveyed at 1.63 acres. Upon further <br />investigation by the city's consulting engineer, it was concluded that the ponding <br />area set aside for storm water runoff was larger than actually needed. An <br />additional .28 acres is available for Rice Industries use, and is of no benefit to <br />the city. <br />This agreement sells the 1.91 acres of land to Rice Industries at the cost of 1.63 <br />acres of land, plus assessments on the entire 1.91 acres. With administrative <br />fees, the purchase price is $122,830. The agreement calls for a subsidy of <br />$51,260 for assessments, $8,583 towards land costs, and $8,000 in <br />administrative fees, for a total of $67,843. Because the subsidy for land costs is <br />minimal, the entire subsidy will be paid upfront. The TIF subsidy is 12% of the <br />total project cost. <br />OPTIONS: <br />1. Approve the contract for private development between Lino Lakes EDA and <br />Rice Industries, Inc. <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />