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.. - 6Qi 0(F • Inif CAMS Phone: (612) 784-3055 011. - Fax: (612)784-3462 •A S 0,,. op • PartnershQ November 19, 1996 Mr. Timothy Nelson The Everest Group, L11) 2665 Long Lake Road, Suite 330 _ Roseville, MN 55113 VIA FAX: 636-0183 Dear Tim: As noted in our conversation yesterday, the EDA met last evening to disused the budge: =._:.-'.- = = - able to give them an update on the negotiations regarding the tax increment assistance package for the development of Building N, Mounds View Business Park. • I summarized the general items in the development agreement, as drafted by Briggs & Morgan, such as looking at estimated costs for public improvements, site improvements and market value c._ :.:..:v _ ..;: t:; substantiate the total assistance package. In addition, we discussed the City's request for a third party appraisal to determine a fair market value for the land and setting a cap on the total incre_oea : to the project rather than providing 90% of the increment for the full 15 years of the agreement. I explained staff's reasoning for the cap based upon our need to ensure that there are enough qualifying costs to apply to the total increment generated. In addition, I outlined those items which the Everest Group and the City could not agree upon such as 1.) overhead fee as a qualifying costs; 2.) method to determine fair market value of the land and 3.) setting a cap on the amount of reimbursable assistance as part of the agreement. I proceeded to inform the EDA of the Everest Group's options based upon the block in negations with the City on the item noted above ... 1.) remove the cap and allow for the collection of 90%of the increment 2.) offer to donate the land to the City as open space 3.) donate the land to a non-profit as open space. The EDA's response and final tax increment offer must contain the following: 1)the agreement must have a method to substantiate the payment of tax increment assistance by establishing qualifying costs related to the project; 2.) fair market value must be determined as part of the agreement with either an agreed upon appraiser or through two separate appraisals(one determined by each party); 3.)the overhead fee, in their opinion, is not a reimbursable costs that should be applied to the project and 4.) an assessment agreement option should be included as part of the agreement. III The City would be willing to review the possibility of accepting Everest's offer to donate the land. You may call Bruce Kessel to determine the City's tax status. • 1.��SO.TFow�rNi 2401 Highway 10• Mounds View, MN 55112-1499[6 "' V INKT„ KW.recyded paper Equal Opportunity Employer