2004-139 Council Resolution - 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 Sale $82,522 Total GO Tax Increment Bond $2,285,999 Pooled TIF from Panattoni is not available up -fron t, 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 increment is_ generated -an- nua ll-y, the first priority for its- use - would -be-to -pay debt- service - -- - - - - -- on these bonds. B 1m • ro - u infrastructure costs 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 cost s, which will be assessed to the developer. C) Tax increment pay-as-you-go note to developer We are recommending a land write down in the am ount 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 reimbursed 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 m easures 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.