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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE <br />AGENDA ITEM 3A <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />EDAC MEETING DATE: July 2, 2019 <br />REQUEST: Lyngblomsten Request for Financial Assistance <br />BACKGROUND <br />At the May 6, 2019 City Council work session staff received direction to prepare the tax <br />increment financing plan, associated contract for private development and schedule the required <br />hearings. Based on the District Framework, discussed at the meeting, the reimbursable costs <br />will not exceed $3,600,000. Council requested that further evaluation include methods to reduce <br />the duration of the district to the extent possible. <br />Staff has been working with Baker Tilly, city financial consultant, and Kennedy and Graven, city <br />development counsel, to draft the plan and contract that stipulates the minimum improvements, <br />developer requirements and potential reductions in increment and/or city reimbursement. <br />Mikaela Huot of Baker Tilly has provided an updated memo regarding the proposed use of tax <br />increment financing and key elements of the contract. <br />Ms. Huot will be present at the meeting to review the memo and recommendations. <br />The City Council will be holding a public hearing and considering adoption of the TIF plan on <br />July 8, 2019. The EDA will also hold a meeting on July 8, 2019 for both the TIF Plan and the <br />Contract for Private Development. <br />EDAC CONSIDERATION <br />Staff is requesting recommendation from EDAC regarding use of Tax Increment Financing for <br />the Lyngblomsten project. <br />ATTACHMENTS <br />1. BakerTilly Memo, dated June 19, 2019 <br />2. Draft TIF Plan <br />3. Draft Contract for Private Development <br />