CC PACKET 04252000 - Laserfiche WebLink

Home Browse Search

HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31 , 1999 Note 7. Building Acquisition During 1997, the Housing and Redevelopment Authority purchased property, with an existing building being utilized as a retail outlet, in Apache Plaza Shopping Center. The existing tenant had entered into a 15 year lease agreement with the former owner , effective August 1 , 1996 and. terminating on July 31 , 2011 . The Authority assumed the lease obligations with the existing tenant without significant modification of original lease terms. , Terms of the lease require annual minimum rental payments of $67,840 for the period commencing August 1 , 1997 through July 31 , 2002; $74,302 for the period commencing August 1 , 2002 through July 31 , 2007; and $80,763 for the period commencing August 1 , , 2007 through July 31 , 2011 . In addition, the lease contains a percentage rent for each year gross sales exceed a threshold amount. The lease agreement also contains two five year options, which may be' exercised by the tenant. Tenant is responsible for its pro-rata share of taxes, insurance and common area costs. I Subsequent to acquisition, the Authority permitted the .City to expand the building to include retail space for one of its off-sale liquor operations. This building expansion was financed by the issuance of liquor revenue bonds of $900,000 and was completed in November 1997. It is anticipated that no rent will be charged the City for use of this property, however, the City is responsible for debt service asso- ciated with the bonds issued. Note 8. Tax Increment Fiance Districts ' The Housing and Redevelopment -Authority of St. Anthony is the administering authority for several tax increment finance districts within the City. All housing and rede- velopment districts were established in accordance with state statutes and follow applicable state laws and provisions. General obligation tax increment bonds were issued to acquire property and finance , improvements for the Kenzie and Walbon housing projects. The incremental portion of general property taxes generated from these tax increment districts will be used ' to retire the bonds issued to finance the housing and redevelopment projects. How- ever, future tax increment revenues of the Kenzie district have been pledged to .retire bonds issued for construction of the community center complex, if required. At December 31 ,1999, $2,100,000 of bonds issued in connection with the community , center complex were outstanding. Bonds outstanding related to the Walbon project were $70,000 as of December 31 , 1999. The Authority issued $1 ,720,000 of general obligation taxable tax increment bonds , to assist in acquisition costs of certain property to be developed in the Apache Plaza I tax increment district. With these proceeds and other available existing funds, the Authority contributed $1 ,800,000 towards the acquisition costs of certain property being developed. Tax increment revenues received will be used to retire these bonds and interest with any deficiency to be provided from either the Kenzie Housing or Chandler Housing districts. , -16- ,