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Agenda Section: 9.G MOS Report FOR COUNCIL CONSIDERATION Report Number: 93-467C Report Date: 1-21-93 STAFF REPORT Council Action: u �M 0 Special Order of Business CITY COUNCIL MEETING DATE January 25, 1993 0 Public Hearings ❑ Consent Agenda ® Council Business Item Description: Consideration of Second Payment on Revenue Note Issued to Sysco Administrator's Review/Recommendation: - No comments to supplement this report - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) PI]MMARY; When the Development Agreement on the Sysco Project was drawn up it was recognized that the proceeds of the tax increment bonds issued for the land buydown and public improvements would not be sufficient. to pay for all of the public improvements. The Agreement specified that Sysco would pay the balance of those costs. Per the. Agreement Sysco paid approximately $457, 600 of the public improvement costs. The agreement further required the City issue Sysco a Revenue Note as a possible means of repaying them for the public improvement costs they paid. I used the term "possible means" because the note states that payments will only be made if there are excess tax increments after ,provision for annual debt service payments 'and the City's annual administrative fee. Under the terms of the Revenue Note Sysco is entitled to a payment of $102, 393 . 18 no later than February 1, 1993 . A 1992 payment of $53 , 248.00 was made to Sysco. Due to the amount of the payment Clerk-Administrator Samantha Orduno and I thought the best procedure would be to have Council formally approve this payment. Don Brager, Fina a Director-Treasurer RECOMMENDATION: Approve payment of $102, 393 . 18 to Sysco/Continental Food Services of Minnesota, Inc. per terms of the Taxable Tax Increment Revenue Note of 1991.