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CITY COUNCIL WORK SESSION OCTOBER 6, 2004 <br />APPROVED <br />• 1 <br />2 2. The interfund loan (and any grant monies) will be placed in escrow <br />3 when these conditions have been met: <br />4 <br />5 • Closing on the TIF Parcel <br />6 • All buildings on TIF Parcel have been demolished. <br />7 • Billboard on TIF Parcel has been removed <br />8 • Final plat for townhome development has been approved. <br />9 <br />10 3. The interfund loan (and any grant monies) will be disbursed from <br />11 the escrow when these conditions are met: <br />12 <br />13 • City has issued the first building permit in the townhome <br />14 development <br />15 • EDA and Developer have entered into Assessment <br />16 Agreements setting minimum market value sufficient to <br />17 create enough increment to pay the interfund loan (and TIF <br />18 Bonds, if they have been issued at the time). <br />19 <br />20 If these conditions are not met within two years after funding the escrow, <br />21 the monies are released back to the EDA. <br />22 <br />23 4. The EDA will approve an interfund loan resolution that specifies a <br />24 payment schedule, with interest set at the maximum rate permitted by statute <br />25 (currently, 4%; the rate changes annually). <br />26 <br />27 C. TIF Note. <br />28 <br />29 1. The TIF Note will be issued at closing on acquisition of the TIF <br />30 Parcel. The initial principal amount will be $1 million, with interest at 6%. <br />31 <br />32 2. The TIF Note will be paid solely from 90% of the tax increment <br />33 generated by the property in the TIF District. This note is always subordinate to <br />34 the TIF Bonds (described in part IV below), and is subordinate to the interfund <br />35 loan as well until Assessment Agreements have been signed that produce enough <br />36 increment to pay the TIF Bonds, the interfund loan, and the TIF Note. From then <br />37 on, the interfund loan and the TIF Note are on "parity" (which means increment is <br />38 applied based on the relative outstanding amounts of those obligations). <br />39 <br />40 3. If the total special assessments on the Development Property are <br />41 less than $5,382,565, the Note will be reduced on a dollar for dollar basis. <br />42 <br />43 D. Met Council Grant. The City will disburse grant funds for site work on <br />44 the TIF Parcel, subject to all the terms and conditions of the grant agreement <br />45 between the City and the Met Council. <br />• 46 <br />