Agenda Packets - 1980/08/14 - Laserfiche WebLink

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ROBERT J. DEIKE Alt"rm) at U- Dire,, Del 16121 p7A21N August 10, 1989 Don Pauley City of Mounds View City Hall 2401 Highway No.10 Mounds View, MN 55112 HOLMES & GRAVEN CHARTERED SA Pillsbury Center. Minneapolis. Minnesota 55402 (612) 337-9300 v - 4 -.y NUG190 PJgF►v %tof RE: Contract for Private Redevelopment - Mounds View Business Park South Dear Don: Earlier I forwarded to you a draft of a Contact for Private Redevelopment Dropa9" to be entered into between the City of 'ciuunds vlew and Com;aercial Pfop Investments, Inc. relating to the development of Mounds Vi-w �'_rk S-Jaih. understand that you will be forwarding this draft to the Criy Council for its consideration and thought it might be helpful for you have a letter briefly describing some of the highlights of the Contract, particularly as it ecmner.x vrith the Contract for Private Redevelopment which was entered into in January, 1988 for the first phase of the Everest development. The basic structure of the transaction is substantially the same as the earlier Everest agreement. In effect, the City will finance the developer's acquisition of the subject property and construction of various public improvements including site preparation, road and utility improvements and various other improvements of a public nature. The City's financing will be obtained through the sale by the City of a tax exempt tax increment general obligation 5ond to tend th purely public Improvements and a taxable tax increment general obligation bond to fund the land acquisition and site preparation costs. As was the case in the earlier Everest development, the City will retain its financing and only release funds at such time as the developer has produced improvements which generate sufficient market value to pay tax increment in amounts necessary to amortize that portion of the bond proceeds being released. The tax increment in each year will be used first to pay debt service on the tax exempt tax increment bond arid then to pay debt service on the taxable tax increment bond. The developer will guarantee that sufficient tax increment will be generated to pay the taxable tax increment bonds after subtracting the amount of tax increment necessary to pay the tax exempt tax increment bonds. That guarantee, unlike the earlier agreement, will be secured by a first mortgage ;rented by the developer with respect to the development property.