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MEMORANDUM <br /> DATE: July 14, 2000 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: TAX INCREMENT/EVERGREEN TOWNHOMES. <br /> In September of 1989, the St. Anthony Housing and Redevelopment Authority and the developer <br /> entered into an agreement to develop an area of the City now known as Evergreen Townhomes. <br /> Soil correction was financed by tax increment at a cost of$267,000 plus interest. Pursuant to the <br /> agreement, any year in which the tax increment should exceed the amount necessary to pay the <br /> costs authorized by the TIF, the H.R.A. shall (commencing 1/1/93) use the excess amount to pay <br /> for the cost of the soil correction note. <br /> Upon receiving the 2000 first half tax settlement, the TIF District's excess increment totals <br /> $33,361.29 and is payable per the agreement. Jerry Gilligan from Dorsey & Whitney has <br /> confirmed the terms of the agreement. <br /> Total payments included: <br /> $ 25,932.00 in 1993 <br /> $ 50,173.09 in 1994 <br /> $ 59,058.24 in 1995 <br /> $ 64,199.17 in 1996 <br /> $ 68,260.59 in 1997 <br /> $ 69,771.33 in 1998 <br /> $ 66,695.58 in 1999 <br /> $ 34,006.19 in July - 2000 <br /> $438,096.19 <br /> Recommendation <br /> Council approves the final payment to Norwest Investment Services, Inc. in the amount of <br /> $34,006.19 ($1,755.34 interest and $32,250.85 principal). <br /> The Evergreen District expires in year 2001. Since the debt will be defeased with this payment, <br /> there will be a year and 1/2 of increment remaining for the City to pool the money into the TIF <br /> Budget. <br /> • <br />