Agenda Packets - 1998/08/24 - Laserfiche WebLink

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City of Mounds View Staff Report August 19, 1998 Page 2 Developer Financial Commitments: No additional information on this matter was available at the time this report was written. If any new information is received, staff will update the City Council at the August 24th meeting. Land Acquisition: In accordance with the terms sheet the City/EDA will be solely responsible for acquiring the RentAll site and complying with state and federal relocation requirements. A cap of$550,000 has been placed on the cost of acquisition and relocation for this site based on appraisals which have been completed and relocation cost estimates provided by Evergreen Land Services. To determine if the site can be acquired and the existing business relocated within the$550,000, a purchase agreement must be negotiated with the current property owner and a specific relocation amount determined. Staff is requesting that the City Council authorize Evergreen Land Services to negotiate an option/purchase agreement with the current property owners and to determine a specific relocation amount for approval by the City Council/EDA at a future meeting. The developers will be responsible for acquiring any additional property and will be reimbursed as part of the $1,700,000 of TIF assistance. Minnesota Department of Trade and Economic Development(DTED) Redevelopment Grant Program: On August 18, 1998, Economic Development Coordinator Kevin Carroll attended an informational meeting regarding this new grant program,which was designed to"assist with complex and costly redevelopment projects that might not occur without public fmancial assistance." A total of$4,000,000 will be available: half in October of 1998 and half in April of 1999. At least 25%must be awarded to sites in Greater Minnesota. The application deadline for the first half of the semi-annual grant cycle is October 1, 1998, and the grants will be awarded in November or December. Grant recipients will be determined by considering criteria that include the following: contamination remediation needs (15 points), compliance with TIF financing requirements (30), the site's "redevelopment potential"(50),proximity to public transit(5), and multi jurisdictional projects (5) that take into account the need for affordable housing(5)and convenient transportation(5). Grant recipients will be required to pay for at least one-half of the projected redevelopment costs as a"local match,"from any money available to the municipality. The City's TIF assistance to the project would qualify as a local match. Each such application must include a copy of a City Council or EDA resolution approving the application and committing the municipality to the"local match" requirement. Although the proposed Mermaid project would satisfy many of the grant's criteria, it may not satisfy all of them. This is a competitive application process and I anticipate that there will be a high level of