Agenda Packets - 1989/01/09 - Laserfiche WebLink

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TO: MAYOR AND CITY COUNCIL / FRQM: CLERK -ADMINISTRATOR PAUL DATE: JANUARY 11,1989 SUBJECT: SYSCU/CONTINENTAL MINNESOTA TAX INCREMENT CONTRACT Late in the afternoon of Tuesday, January loth, I received a call from Barbara Portwood of Holmes & Graven, the City's legal consultant an tax Increment financing matters, and Jim Casserly, the legal consultant for Sysco, regarding some final items on the tax increment agreement. At the end of the conversation, it was agreed that the contract is ready for presentation to the City Council and Sysco for approval by the two parties. Mr. Casserly requested that I present Vie contract to the Council at the earliest possible date in order to have same lead time between the approval of the contract and bond sale. Based upon Mr. Casserly's request, I have scheduled this item for your consideration at the January 17th Agenda Session. The following is a brief summary of the major points of the tax increment contract which is called the Contract For PrivAte Redevelopment. A. The City of Mounds view agrees to: 1.-- 1. Sell Tax Increment bonds in the amount of $1.85 million, but not to exceed $2 million with a 15 year term by March 1, 19B9, 2. Acquire the site, approximately 75 acres, at a cost of $1.1 million and transfer title to Sysco for $1, 3. Pay for the cost of public improvements, estimated at E700,000, from the bond proceeds with such improvements !."cited to the fc,.owing, *soil corrections *water and sanitary sewer mains storm sewers and ponds *revocation of fence on Hwy. 610 right-of-way *landscaping on Hwy. 510 right-of-way *road improvements to Co. Rd. J - Xylite intersection *engineering fees for the design and inspection of the public improvements. 4. If funds available from the bond proceeds for public improvements are less than the actual cost for the improvements, the City agrees to pay Sysco the difference, not to exceed $385,000, from any excess increments that might accrue to the City from the project. The money can be paid in 15 equal installments at present value or in any amount greater than 1/15th of the principal amoui.t. 5. Not include the project in the City's Fiscal Disparity Pool.