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cry o t. <br /> C� yor <br /> ritri ,, <br /> 0UNDS- <br /> Phone: (612) 784-3362 <br /> e f fiez of ttiE city cAiminithzatoz <br /> Phone: (612) 784-3055 <br /> EW SAMANTHA ORDUNO Fax: (612) 784-3462 <br /> "Quite Simply the Best" <br /> MEMORANDUM <br /> TO: EDA PRESIDENT AND COMMISSIONERS <br /> DATE: MAY 19, 1994 <br /> - - RE: <br /> DEVELOPMENT FEES ASSOCIATED WITH THE MSP/WESTMINSTER SILVER <br /> LAKE POINT SENIOR HOUSING PROJECT <br /> I present the following information in a memo separate from the EDA <br /> agenda because I want it to be an informational item that may or <br /> may not become a serious item of consideration. <br /> When MSP and Westminster approached the City in February of this ' <br /> year, one of their requests was that "the City defer all fees <br /> associated with building permits, zoning approvals, TIF approvals, <br /> etc. until construction loan closing" . Paul Harrington has had <br /> interactions with MSP informing them of the potential development <br /> costs for this project, i.e. ; WAC/SAC charges, building permit <br /> fees, etc. <br /> To date, the City has incurred legal costs associated with this <br /> project - drafting the Development Agreement, meetings and review <br /> of the proposal. It is common practice among cities to absorb such <br /> costs if the project proceeds. Some cities require a cash deposit <br /> prior to any development discussions to defray the legal and - <br /> administrative costs should the project not proceed. Discussions <br /> that I have had with MSP (Jeff Huggett and Milo Pinkerton) have <br /> centered on the City's position that all associated development <br /> fees (building permit, WAC/SAC, review) will be deferred until <br /> closing as the City has had few costs to this point. <br /> The issue arises as to the City's position regarding absorption of <br /> legal fees should the project not proceed. The City can absorb the <br /> fees and pay them from TIF funds or require the developer to <br /> reimburse the City for these costs. Jim Thomson has drafted an <br /> agreement which could address the issue of development fees. I have <br /> attached the draft to this memo. <br /> I present this issue for purpose of discussion in connection with <br /> the consideration of the Development Agreement which will take <br /> place next Monday night. I believe it prudent for the issue of <br /> fees to be addressed at the meeting, so that there is not <br /> misunderstanding as to what fees will be paid at what time. From <br /> 6 .PRINTED WITH <br /> SOYINK 2401 Highway10 • Mounds View, MN 5511 - <br /> 21499 <br /> recycled paper <br />