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CgTrY OF <br /> illor . <br /> Phone: (612) 784-3055 <br /> MY ax: (C.i,_ ;84-3462 <br /> •. <br /> "Quite Simply the Best" <br /> January 9, 1997 . <br /> Mr. Tim Nelson <br /> Everest Development, Ltd. <br /> 2665 Long Lake Road <br /> Suite 330 • a <br /> • Roseville, MN 55113 <br /> Dear Tim: • <br /> The 1997 Mounds View City Council met for the first time last night and discussed the »:._:.: _2 ..r <br /> Everest Building N project. Myself and Cathy Bennett were the only staff present on this matter and <br /> we reviewed the discussions of the past two months with the Council. They had beet ,i: ; ; ., ` -._._ <br /> our correspondence over this time period. <br /> In particular, the recent options of either an up-front $1.2 million deal or the pay-as-you-go deal • <br /> proposed by the City last November were explained. As I stated to you in my letter o J - -.ry 2, <br /> 1997 I would not recommend to the previous Council the up-front$1.2 million deal, and 5. y_ Wised <br /> this Council of that as well. I did say that if a deal is to be made, that the terms !aid .Na _ ] thy' <br /> Bennett's November 19, 1996 Ietter,remain the City's collective position, that being the last position <br /> the previous Council took, and the one that resulted from the face to face meeting with Everest back <br /> in the fall. Since some relative items have been discussed since then, albeit in regards to the up-front <br /> deal, the points laid out in your letter of November 22, 1996 have been addressed in pai'.:. <br /> Based on our discussion with the new Council, the City's final offer is basically the November 19, <br /> 1996 offer. While some members of the previous Council had expressed interest in an upfront' <br /> proposal, that interest did not gain a consensus with other Council members, and hence no action was <br /> ever taken. The new Council requested background on past City policy and practice in our <br /> agreements with Everest in order to gage the current proposals. Representing staff and my <br /> understanding of the City's history with Everest and your expressed concerns regarding current <br /> market conditions, I stated I felt the City has been more than reasonable in attempting to bring this <br /> project to a conclusion, particularly in agreeing to lengthen the term of an agreement to 15 yeas. I <br /> was directed to therefore contact you again with this final offer. <br /> This offer consists of: <br /> 1) maximum 15 year pay as you go tax increment financing at the 90/10% split <br /> to reimburse Everest for the fair market value of the land and eligible site • <br /> - improvement costs at 7% interest <br /> 2) the land value component would be based on an acceptable appraisal from <br /> �!'soiriNKI 2401 Highway 10 • Mounds View, MN 55112-1499_ sir <br /> � <br /> Equal Opportunity Employer ,00%reevaed owl' <br />