09/27/2004 Council Packet - Laserfiche WebLink

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• City of Lino Lakes September 20, 2004 Page 4 The total estimated cost of Lake Drive improvements is $2,401,521. It is proposed that several sources of revenue be applied to reduce that cost. F unds from Anoka County ($7,500), Century Farms ($25,500), and the Fairview Land Sale ($82,522) would all be available when needed to directly reduce the estimated cost of the project and, as a result, the size of the bond issue. A summary follows: TABLE 5 Total cost of Lake Drive $2,401,521 Anoka County $7,500 Century Farms $25,500 Fairview Land S ale $82,522 Total GO Tax Increment Bond $2,285,999 Pooled TIF from Panattoni is not available up- front, but would be pledged to pay a portion of the debt service over the next 8 years as the increments are annually paid. As tax _lncrementjs_generated annua II_y, the- first .priority for- -its use would -be to- pay -debt service on these bonds. B) improvement Bonds to pay infrastr t rr epsts The total estimated cost of the improvements is $8,382,027, proposed to be reduced by other revenues as shown in Table 2 to $5,382,865, which woul d be identified in the development agreement as the maximum assessment amount. Improvement bonds are proposed to be issued to pay $5,382,865 of infrastructure costs, which will be assessed to the developer. C) Tax increment pay -as- you -qo note to developer We are recommending a land write down in the amount of $2,700,000 total, with $1,000,000 provided in the form of a 16 -year pay -as- you -go note, carrying a 6% interest rate. The remaining land write down is described in D below. D) Internal loan to Developer — A portion to be reim bursed by Met Council Grant, if not, then reimbursed with TIF The developer has requested that $1,700,000 be provided near the be ginning of the project to reduce out of pocket expenditures related directly to the redevelopment property. We have negotiated several measures to securitize these "up- front" dollars in the followi ng manner: • It would not be paid until completion of demolition of all buildings within the District, removal of the billboard, and approval of the prelim inary plat for the townhome development. • When it is paid, it would be put in escrow with a requirem ent that it not be released until such time as the first building permit is obtained on the townhome project.