10-13-1997 EDA - Laserfiche WebLink

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City of Mounds View Staff Report October 10, 1997 Page 2 • 4. The increment will be pledged subject to the EDA's district debt service or prior bonds. 5. Everest's development and contractor profit is not covered as a reimbursable expense. 6. Everest will have until Dec. 31, 1999 (two years)to construct the project with pay-as- you-go provisions applicable only after construction is complete. The final payment date can not exceed February 1,2013. 7. Assessable public improvements can be done by the City and assessed against the property if and when the City wished to complete improvements to Program Avenue. 8. No provision was made that would expose risk to the EDA due to changes at the State legislature by the reduction of the commercial/industrial tax classification rates. The increment would incorporate any reduction in the classification rate which may reduce the amount reimbursed to Everest. 9. The EDA would agree to give Everest the right to transfer the property and/or assign the agreement to a third party,prior to the execution of a certificate of completion, subject to a reasonable creditworthiness standards to be applied to the transferee and the transferee's assumption of the Development Assistance Agreement. 10. An interest rate of 8%would be applied to the present value of$1.2 million and would begin accruing upon the signature of the certificate of completion rather than upon execution of the agreement. 11. The Everest Group would be required to make a payment of$56,771 to the City of Mounds View for Park Dedication Fees due prior to execution of the agreement. Conclusions: The development assistance agreement will include the provisions outlined above. I have included a statement in the resolution that the execution of the development agreement can not be made until the Developer makes a payment of$56,771 to the City for Park Dedication Fees due. 410