07-08-1996 WS - Laserfiche WebLink

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Cathy Bennett City of Mounds View Page 2 In September, 1989, Everest entered into an additional development agreement under which the City provided tax increment financing in connection with the development of three buildings totaling 264,000 square feet in Mounds View Business Park South, with Everest guaranteeing a minimum assessed value of$7,400,000. Between 1990 and 1992, Everest completed the three buildings in Mounds View South and leased them to such tenants such as Medtronic, Mounds View School District, U.S. Geological Survey, First Team Sports, Garment Graphics, and Liberty Check Printers. The buildings in Mounds View South took longer to lease because they were built during a period of economic downturn and severe real estate recession. Everest honored the terms of its development agreement by building the buildings with internal financing at a time when mortgage financing was non-existent, and then sat x;+ _4, •r a = A T ' In June of 1994, Everest finalized pay-as-you-go TIF assistance agreements for the C. G. Hill project and the Multi-Tech Systems expansion project. Both of these owner-occupied projects were completed as anticipated by January, 1995, contributing $3,000,000 of additional tax base to the City of Mounds View. In 1993 and again in 1994, Everest submitted tax increment financing proposals for the development of Building N, a 103,000 square foot office/industrial building proposed for a 6.89 acre site on Program Avenue, east of the Mounds View Inn motel and south of the Clinch-On • Products building. Although Everest and the EDA discussed and explored potential terms of a pay-as-you-go TIF assistance package for Building N, the EDA elected not to finalize a development assistance agreement until a company acceptable to the EDA was secured in advance to be an owner/occupant or, at least, an anchor tenant for the project. Without a building in the ground and a development assistance agreement in place, we have been unable to secure an advance commitment from a company for this project. We believe the decision of the EDA not to finalize a tax increment agreement for Building N was a serious and wasteful error which has deprived the City of tax base and employment, and has opened the door for other nearby communities to benefit by landing tenants who could have located in Mounds View. BUILDING 'N' PROPOSAL We request that the EDA reconsider its position concerning the Building N project by proceeding to finalize an appropriate pay-as-you-go development assistance agreement to reimburse TIF- eligible project costs. In exchange, we will agree to commence project construction in 1996 with completion by 1997. With a development assistance agreement in place, we are willing to guarantee construction of the project and are 100% confident that we will attract a desirable company or companies to occupy the building as an owner or tenant(s), just as we have done successfully on the existing 1,100,000 square feet of space in the business park, and on every other project we have developed. We are prepared to discuss the particulars of a development assistance agreement for the Building N project with the EDA and/or its representatives at your • earliest convenience.