05-12-1997 EDA - Laserfiche WebLink

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City of Mounds View Staff Report May 9, 1997 Page 3 • 3. The land value would be based upon an acceptable appraisal from one of the four appraisers previously submitted to Everest from the EDA. The appraisal would be paid for by Everest. 4. The increment will be pledged, as previously agreed to, 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 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, 2014. 7. Assessable public improvements will be done by the City and assessed against the property. 8. The EDA will not assume any risk should the State legislature reduce the commercial/industrial tax classification rates. 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. These provisions were previously outlined to Everest in a letter dated January 9, 1997 by Chuck when I was on maternity leave. Staff would be willing to recommend increasing the interest rate on the bond from 7%to 7.5%to make the project a reality. If the EDA agrees to these provisions I will have Jim O'Meara complete the language on the Development Assistance Agreement once Everest agrees to these terms. The EDA may move forward on passing resolution No. 97-EDA67 which would approve a Development Assistance Agreement with Everest Group with the execution of the final agreement signed by myself and President McCarty. Otherwise, a motion can be made accepting these terms with passage of a resolution upon final draft of a development assistance agreement done at another meeting. •