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<br />The TIF plan also includes a 10% allowance for City administrative costs. This City can use this 10% to <br />pay for any ongoing costs associated with administering the project in the District. It also provides for <br />repayment of an interfund loan. This interfund loan is the mechanism to reimburse the City from tax <br />increments for any expenditures incurred in connection with the TIF plan prior to receipt of any tax <br />increment. <br /> <br />TIF Agreement: <br /> <br />The TIF agreement is the document that specifies how, when, and under what conditions the EDA will <br />provide tax increment generated in TIF District #1-7 (Villas of Mounds View) to MWF. This agreement <br />contains many standard provisions, but the key business points in the agreement are as follows: <br /> <br />Developer: Villas of Mounds View, Limited Partnership <br /> <br />Development Property: PID: 173023140001 (4889 Old Hwy. 8) <br />PID: 173023140002 (4889 Old Hwy. 8) <br />PID: 173023140003 (4889 Old Hwy. 8) <br />PID: 173023110004 (4943 Old Hwy. 8) <br /> <br />Minimum Improvements: Construction of a 120-unit multifamily rental building <br /> <br />Construction Schedule: Commence construction by April 30, 2022 and complete by July 31, 2023 <br /> <br />Public Assistance: the EDA will reimburse the Developer for Qualified Costs in the form of a pay-as-you- <br />go (PAYGO) note in the amount of $1.77 million. Interest will be simple, non-compounding paid at 4%. <br />The Developer will receive 90% of the tax increment generated from the Minimum Improvements to repay <br />the note. “Qualified Costs” means costs of land acquisition and construction of the Minimum <br />Improvements, including without limitation, architectural and design fees, civil engineering fees, utility <br />improvements and relocation, underground parking and any other expenses incurred by the Developer <br />in connection with construction of the Minimum Improvements and eligible for payment in accordance <br />with the TIF Act. <br /> <br />Income restrictions: Per the TIF plan, at least 40% of the units must be affordable to those at or below <br />60% of AMI. Per the developer’s proposed project – 3 units are affordable to those at 30% AMI, 108 <br />units are affordable to those at 50% AMI, and 9 units are affordable to those at 60% AMI. <br /> <br />Land Purchase: MWF agrees to purchase the Development Property from the EDA and City for <br />$1,550,000. <br /> <br />Fees: The Developer shall pay for the reasonable out-of-pocket legal, financial consultant and <br />administrative fees associated with this transaction. <br /> <br />Document(s) Required: <br /> <br /> EDA Resolution 21-EDA-349 Adopting Modifications to the Redevelopment Plan, Establishing <br />TIF Dist. No 1-7 (Villas of Mounds View) and Adopting a TIF Plan by motion <br /> EDA Resolution 21-EDA-351 Approving Contract for Private Development and Issuance of <br />TIF Note by motion <br /> EDA Resolution 21-EDA-350 Approving Purchase and Development Agreement by motion <br /> EDA Resolution 21-EDA-352 Approving Interfund Loan by motion <br /> <br /> <br />