Agenda Packets - 1996/07/08 - Laserfiche WebLink

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©TY OF CURDS Phone: (612) 784-3055 •.o Q E /W Fax: (612) 784-3462 S ogress• Partne s• July 1, 1996 Mr. Timothy Nelson The Everest Group, LTD 2665 Long Lake Road, Suite 330 Roseville,MN 55113 Dear Tim: I want to thank you for preparing the proposal on Building"K"as requested and for being patient as we proceed through these negotiations. After our discussions regarding Building"N"and"K"staff is not prepared to recommend your current proposals to the EDA for consideration because the terms of the agreements are not in the best interest of the City for several reasons. The Building"N"proposal would require the City to reimburse Everest for both public improvements 41 and almost all of the investment made in the purchase of the land. The Everest Group made the decision to purchase the land several years ago as an investment without any guarantee that tax increment funds would be available to reimburse for the carrying costs of that investment. In addition,the development of Building"N"would be for a speculative building since negotiations with Company"A"have not proceeded as planned. Several members of the EDA have not been favorable to speculative buildings in the past and corporate citizenship is a concern when tax dollars,whether incremental from the development or not, are involved. The length of your proposal also raises concern as it comes very close to the decertification date of the district. The Building"K"proposal should incorporate the City's costs to acquire the homes not currently owned by Everest. Condemnation proceedings are very costly and lengthy. To meet the planned construction dates the City may need to provide incentives for the relocation of the property owners in an expedient time frame. Current excess increment funds would need to be expended for this transaction and it is in the best interest of the City to replenish a portion of these funds for other redevelopment purposes. In light of these circumstances staff is willing to recommend the following proposal to the EDA for consideration. The proposal takes into consideration some of the EDA's previous desires for future tax increment agreements regarding the Mounds View Business Park, the interests of the community and yet attempts to meet some of your investors needs for an equitable project. Building"N" (Terms: 8-years"Pay-as-you-go"revenue note, 7% interest, 15% Admin) Construction fall 1996, pay 1998 STotal Reimbursement: $757,259.96 present value plus interest of$362,982.04 Assistance per sq.ft.: $2.52 rt* • PRINTED WITH SOY INK TM 2401 Highway 10• Mounds View, MN 55112-1499 a 100%recycled paper Equal Opprotunity Employer