Agenda Packets - 1989/01/09 - Laserfiche WebLink

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B. Sysco agrees to: 1. Build the main building and truck maintenance facility with a total area of 244,000 sq. ft. at a cost of approximately (� $6.5 million with an assessed market value of no less than $5.9 million. 2. Provide the City with a mortgage whereby the City holds the first mortgage on the project and which guarantees the payment of property taxes. 3. Provide title to the undeveloped land, approximately 40 acres, for use by the City for park, open space, or other legally allowable public purposes. 4. Commence construction of the buildings and public improvements by March, 1989 any complete by December 31, 1989. 5. Provide the City with a Development Letter of Credit equal to the full principal amount of the bonds prior to issuance. This letter of credit will remain in effect until the improvements have been certified as completed and a Guarantee Letter if Credit is provided. 6. Provide a Guarantee Letter of Credit equal to the highesst principal and interest payment in the first three years plus 5% and $16,925 to guarantee that the tax inrreme will be adequate to make principal and interest paymE. during the first three years of the bond issue. _ 7. Guarantee that the tax increment will be adequate to pay the principal and interest payments and provide the City with $16,925 per year as an administrative reimbursement for the administration of the tax increment bonds. B. Pay a $50,000 cash park dedication fee at the time the bonds are sold. I will be presnt at the January 17th Agenda Session to answer any questions you might have regarding this memorandum and the attached Contract For Private Redevelopment. If I cannot answer a question, I will be sure to have an answer et the January 23rd Council Meeting at which time I will be requesting the Council approve the Contract. On the 23rd I will aiso be asking the Council to authorize the sale of the bonds. As you know the sale must be advertised and bids received before the sale can occur. Since we will be comitted to selling the bonds by March 1st, sale would have to occur at your February 27th Council Meeting. I would also like to discuss with ,you on the 17th the possibility of amending the original Tax Increment Plan to allow the use of tax increments to fund public activities other than parks and recreation facilities which is in the original plan. As you may recall, we have previously discussed the fact tnat this area might be an ideal location for another well, water treatment plant and water tower should one be required in the near future and can be funded with excess increments from the project during the 15 year life of the bond issue. I will look forward to discussing all of these matter at the January 17th meeting.