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? Item No. 7F Staff Report No. EDA-97-90C Meeting Date 10-13-97 III Type of Business EDAB WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA67 Approving and Authorizing the Execution of a Development Assistance Agreement with The Everest Group for Building N Date of Report: October 10, 1997 Overview: At the May 12, 1997 EDA meeting specific terms for a development assistance agreement were presented to the EDA and a motion was made to direct staff to prepared a development assistance agreement accepting the terms as presented. A revised agreement was presented to the EDA for consideration on August 25, 1997. At that time the Everest Group was requesting that the EDA III extend the term required to complete the 103,000 square foot Building N in the Mounds View Business Park from 1999 to 2002. In addition, staff was requesting that a contingency be included in the resolution that would require that an agreement regarding the payment of park dedication fees be reached prior to execution of the development agreement. The EDA board decided to table consideration of this item until the park dedication fee issue was resolved. Development Assistance Agreement: With the most recent negotiations the final development assistance agreement for building N includes the following terms. 1. The assistance package would provide The Everest Group with a maximum 15 year pay as you go note at 90/10 split. This would reimburse for the fair market value of the land and TIF eligible public and site improvements to be estimated and attached to the agreement as Exhibit D and E. 2. The developer will provide satisfactory written substantiation of the amount and nature of the Development Costs for which reimbursement is sought and only Available Tax Increment will be used to pay the amounts otherwise due on the EDA Note. 3. The land value of$615,000 is based upon an appraisal commissioned by the EDA and • paid by Everest.