11-03-1997 WS - Laserfiche WebLink

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Item No. i" Staff Report No. Meeting Date 10-6-97 • Type of Business WK WIC Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of Expansion of the Mermaid Date of Report: October 31, 1997 Staff has been working on costs projections for the Mermaid expansion with a 500 seat banquet facility. Staff has estimated the additional tax increment generated from the project to be approximately $640,000 financed through a taxable revenue bond for 15 years at 7.25% interest to come up with $300,000 net proceeds that could be applied to the project. Making several expense assumptions, there would be a deficit of approximately $300,000. Additional net proceeds could be generated depending upon the financing structure. The City could finance some of the project costs internally with available increment from other districts which would decrease the interest and increase the proceeds. In addition, there could be a possibility to finance some of the public improvements with tax exempt bonds which again would decrease the interest • and increase the net proceeds. We have assumed the most costly public financing option because the expense projections are very preliminary at this point. (See attached spreadsheet) We met with Kate Drewery regarding the stormwater and felt that it would be possible to take care of the water runoff with just the Mermaid and Rent-All land but concessions would need to be made on adding additional green space within the parking areas. These green spaces could enhance the project and gateway to Mounds View. Discussions and parking studies would need to be made with Mr. Hall regarding his need for parking spaces as there may be other alternatives to the proposal. In addition, staff has had discussion with the owners of Rent-All and they are willing to consider relocating their business to another location on Highway 10. A site has been potentially identified as a viable option. Rent-All would move if the City purchased another site and built them another building on that site. In addition, I would assume that we would need to pay the cost for moving and concessions for loss of business due to the move. We would need to hire a relocation specialist to assist us in this transaction if the City so chooses to proceed with this project. Staff will also be presenting other alternatives at the meeting for a comprehensive redevelopment which would include a hotel and commercial building at the meeting. Additional increment could be generated and a larger public purpose could be achieved. 0 Staff will be looking for direction on how to proceed on this project based on the potential costs assumptions at the work session.