2004-139 Council Resolution - Laserfiche WebLink

Home Search

• • • City of Lino Lakes September 20, 2004 Page 6 iii) That the development agreement contain a provision that a m inimum assessment agreement will be required for any components of the project that wil I continue to be owned by the Developer. As with any standard minimum assessment agreement, it will continue in force on any components of the project owned by the Developer. These agreements will provide some surety that a certain level of i ncrement will be initially generated. It does not shelter the City from any changes such as to class rates, or changes in the tax increment I aw or other property tax laws in general. 2) Assessment to developer a) $5,382,865 will be assessed to the developer after construction of the infrastructure improvements to the project. Should the final assessment amount be less, the total assistance amount would be reduced by an equal sum. 3) Up -front assistance a) This scenario will apply regardless whether the Metropolitan Council grant is approved. The $1,700,000 "up- front" dollars will not be paid until specified benchmarks have been met, and once these are met the dollars will be placed in escrow until such a time as the first building permit is issued on the townhome project. The benchmarks for placing the $1,700,000 in escrow are: i) Acquisition, demolition, relocation of TIF properties has been com pleted ii) Removal of the billboard in the TIF District iii) Approval by the City Council of the preliminary plat for the townhome development within the TIF District. 4) Priority distribution of annu al increment a) The tax increment bonds will receive 1st priority for annual distribution of increment. b) The remainder of annual increment will be proportionately distributed to reimburse the City on its internal loan and to reimburse the developer on its pay -as -you- go note. Of the remaining annual increment after debt service on bonds, the following distribution would occur based on whether the M etropolitan Council grant is received: TABLE 6 Loan Amount % of annual increment distribution City internal loan, without Metropolitan Council grant $1,700,000 62.96% Developer pay -as- you -go -note $1,000,000 37.04% City internal loan, with Metropolitan Council grant $700,000 41.18% Developer pay -as- you -go -note $1,000,000 58.82% Additional Deal Points It is important to note that the developer is sharing a fair am ount of the risk in this project by financing approximately $7.9 million in acquisition costs and agreeing to $5,382,865 in assessments. The developer has also crafted a project which will satisfy the infrastructure requirements of the YMCA. The developer is estimating their costs at approximately $17,000,000, which includes the following: