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�: ___ _- _ . _ _____ ;-�_ _ : . . <br />� <br />EDA STAFF REPORT <br />PAGE TWO <br />MAY 23, 1994 <br />3. The term of the payback is 10 years at an interest rate <br />of 7%. <br />4. The Improvements to the property will be an approximate 60,000 sq. ft. addition <br />to the existing Multi-Tech building to be completed by December 31, 1994. <br />The City's risks in this type of TIF assistance package is minimal. If the development <br />does not generate sufficient increment to make the payments on the Revenue Note, the <br />City is under no obligation to make the payments. The Developer assumes all the risks <br />that the development will generate sufficient revenues. <br />It is anticipated that the project will generate over 150 additional jobs at Multi-Tech over <br />a 5 year period. Perhaps most importantly is that the project keeps in Mounds View a <br />valuable and well respected business which has exhibited the spirit and practice of <br />public/private partnerships. <br />There are conditions to the approval of the Development Agreement - the issue of park <br />dedication fees to the City have not been resolved. As this issue is essential to the <br />progress of the project, the Commissioners may wish to make approval of the <br />Development Agreement contingent upon a resolution between the City and the <br />Developer of the park dedication fee payment. <br />