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AGENDA ITEM 3 <br />STAFF ORIGINATOR: Mary Alice Divine <br />DATE: 10/12/04 <br />TOPIC: Consideration of Resolution No. 04 -03 authorizing <br />entering into a Development Contract with Legacy <br />Holdings /Lino Lakes, LLC <br />VOTE REQUIRED: 3/5 <br />BACKGROUND: <br />Earlier this evening the City Council considered approving a Contract for Private <br />Development between the city and Legacy Holdings, LLC. This redevelopment <br />contract involves tax increment financing generated from TIF District No. 1 -11. <br />Both the city and the EDA have various responsibilities under this contract. <br />The EDA technically controls the tax increment now that a TIF District has been <br />established. (The City Council was required to hold a hearing to approve the TIF <br />Plan, but once that happens, the district is controlled by the EDA.) Therefore, <br />the EDA issues the tax increment pay -as- you -go note, and enters into other <br />agreements regarding the tax increment. <br />The City controls the source of funds for the interfund loan and the Met Council <br />grant. Therefore, the City needs to approve these items in the contract. Also, the <br />City governs land use approvals such as the plat and PUD, which are referred <br />to under the contract. Finally, the City must issue the TIF Bonds (though the <br />pledge of tax increment comes from the EDA). <br />For all these reasons, both the City and EDA are included as parties to the <br />contract. <br />OPTIONS: <br />1. Approve Resolution No. 04 -03 authorizing A Contract for Private <br />Development. <br />2. Do not authorize the contract <br />3. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />