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• <br />• <br />• <br />STAFF ORIGINATOR: <br />DATE: <br />TOPIC: <br />VOTE REQUIRED: <br />AGENDA ITEM 4 <br />Mary Alice Divine <br />11/13/00 <br />Consideration of the Contract for Private <br />Development between Lino Lakes EDA and North <br />American Composites <br />3/5 <br />BACKGROUND: <br />This development contract outlines the conditions for public assistance to North <br />American Composites for the construction of a 25,000 square foot facility on 2.4 <br />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 />$938,400 for a total of $42,000 in annual taxes (based on pay 2001 dollars). <br />The costs for land, assessments and escrow are approximately $226,000. In this <br />agreement, the city agrees to provide tax increment financing totaling $122,250 <br />towards those costs. <br />The agreement removes the assessments of $63,877 upfront. The remaining <br />pay -as- you -go TIF amounts to $58,373 for assistance with land write down and <br />return of escrow. The city will be reimbursed first for the assessments from the <br />available tax increment, and then the developer will receive the remaining <br />increment. Estimated total payback is in 2007. <br />This project is in TIF District 1 -9, which requires a 10% local contribution <br />($13,753). 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 />North American Composites <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />