Agenda Packets - 1995/03/06 - Laserfiche WebLink

Home Browse Search

MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY REQUEST FOR EDA CONSIDERATION STAFF REPORT EDA MEETING DATE March 6, 1995 EDA Action: Special Order of BusinessAgenda Section: 18. Public Hearings Report Number: 95-1256WS ri Consent Agenda Report Date: 3-3-95 EDA Business Item Description: Discussion Regarding Everest's Request for' TIF Assistance for Building N 1 Executive Director's Review/Recommendation - No comments to supplement this rert` !y - Comments attached Explanation/Summary (.attach supplement sheets as necessary) SUMMARY: Tim Nelson from the Everest Group has approached the City with regards to the development of building N in the Mounds View Business Park. As stated in the attached letter, Everest is requesting that the EDA enter into a development assistance agreement for the development �I of building N. The urgency of this request is due to the proposed TIF legislation that would eliminate TIF for new projects. Background: Discussion of the development of building N goes back to 1993 where Everest proposed $900,000 of TIF assistance over 13 years at 9% interest with a 90\10 split. This was in response to a company that was willing to lease 70 percent of the facility from Everest. There was no information provided to the EDA with regards to the proposed tenant. Everest was willing to II reduce the duration of the agreement from 13 to 10 years. it The City made a counter proposal to provide Everest with $1.80 per square foot or a total of $450,192 for 5-7 years at 7% interest with an 85\15 split. Everest was willing to accept $1.75 per square foot or a total of$450,000 for 11-12 years at 8.5% interest. There was no agreement on the negotiations and therefore the project did not proceed in 1993. Everest informed the City (I that due to the lack of TIF the proposed tenant had elected to locate elsewhere. • 41 /� I�I Cathy B=ig e F, Economic Development Coordinator I� RECOMMENDAT ON: 111 11 111 I�