Agenda Packets - 1991/11/04 - Laserfiche WebLink

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November 4, 1991 Page Two D. The City is obligated to issue a Revenue note which is equal to $1,800,000 minus the amount of the Bond proceeds available for the land write-down and the possible improvement costs The $1,800,000 represents the amount of money Sysco advanced the City for the cost of the public improvement and land write-down costs . E. Any costs which exceed the $1,800,000 limit are the sole responsibility of Sysco and the City has no obligation to pay such extensive costs or any interest therein. In an effort to determine the amount of the Revenue Note, the City and Sysco differed greatly on the amount of the "project costs " which were not the City's responsibility to pay. Sysco's attorney and the City's Bond Counsel, Jim O'Meara, Don Brager and myself have spent the past 6 months trying to come to settlement terms which are satisfactory to the City • and Sysco. I believe a satisfactory settlement has been reached. The proposed settlement consists of the following payments by Sysco: 1. "Zero Out" the project account which has carried a negative balance of approximately $36,000 2 . Pay approximately $18,000 in identified additional project costs 1. Pay add tIonal—adminis-t a i e-costs of-$25,0-00-ffrom which our legal fees will be paid) 4 . Pay $11,000 in interest expenses on negative balances carried over time in the project account. Total: $90,000 The proposed settlement provides for an $80,000 cash payment from Sysco and the remaining $10,000 to come from the tax-Increment fund --- - -- The Revenue Note issued by the City to Sysco will be approximately $457,500 . This amount is to be paid out of • excess increment on February 1st of each year until 2005 . It is doubtful that there will be sufficient amounts in