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. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY <br /> REQUEST FOR EDA CONSIDERATION <br /> III STAFF REPORT <br /> EDA MEETING DATE August 28, 1995 <br /> EDA Action: <br /> ❑ Special Order of Business Agenda Section: 7.A <br /> ❑ Public Hearings Report Number: Fi)A-95-39C <br /> ❑ Consent Agenda Report Date: R-74-95 <br /> Ei EDA Business <br /> Item Description: Consideration of Development Assistance Agreement By and Between the EDA and Bridges <br /> Leasing Company, LLC for Midwest I.V. <br /> Executive Director's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached <br /> Explanation/Summary (attach supplement sheets as nece:.saty) <br /> SUMMARY: <br /> As a result of the discussions between the EDA and Bridges Leasing Company at the August 7, 1995 work <br /> session and through months of negotiations, the attached Draft Development Assistance Agreement has <br /> been prepared for consideration of approval by the members of the EDA. The agreement provides for the <br /> 0 following: <br /> 1. A "Pay-As-You-Go" Tax Increment Financing assistance package. Ninety percent of the new <br /> increment on the property, which is located on lot 3, block 1, North Star Industrial Park 2nd Addition, <br /> will be paid to the Bridges Leasing Company, LLC for prepaid development costs (land purchase, <br /> lateral water and sewer hookup, stormwater retention pond, other public improvements) and ten <br /> percent is paid to the City for administrative fees. <br /> 2. The increment payback will be in the form of a Revenue Note in which the money will be repaid to <br /> Bridges Leasing Company, LLC only from the newly generated increment and only to an amount not <br /> to exceed$54,846 annually. This equals a total of$2.67 per sq.ft. of assistance. <br /> 3. The term of the payback is 9 years at 7% interest to begin tax increment payments in 1997. <br /> 4. The project improvements include construction of approximately 30,000 sq.ft. of <br /> office\warehouse\manufacturing space on 2.87 acres. The agreement notes that the developer will <br /> lease not less than 20,000 sq.ft. of the building portion of the improvements to Midwest I.V. for their <br /> I corporate headquarters and operations center. <br /> t <br /> Cathy if ett, Economic I evelopment Coordinator <br /> ECONIMENDATION: <br /> Motion to waive the reading and approve/disapprove Resolution No. 95-EDA-30 Approving and <br /> Authorizing the Execution of a Development Assistance Agreement with Bridges Leasing Company <br /> I <br /> I <br />