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MEMORANDUM <br /> DATE: July 20, 1993 <br /> TO: Thomas D. Burt, 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 to be financed by the TIF at a cost of$267,000. Pursuant to the agreement, <br /> any year in which the tax increment should exceed the amount necessary to pay the costs <br /> authorized by the TIF, the H.R.A. shall (commencing 1/1/93)use the excess amount to pay for <br /> the cost of the soil correction. <br /> Upon completion of the 1992 audit, the TIF District's excess increment totals $28,814 and <br /> • appears payable per the agreement. I checked with Jerry Gilligan from Dorsey & Whitney.and <br /> he confirmed the terms of the agreement. <br /> Upon his review, Mr. Gilligan has advised the language in the contract and Minnesota Statue <br /> allows for payment, less any administrative costs incurred by the H.R.A. His recommendation <br /> is a set percentage of 10% of the present TIF's balance and 10% of revenues received for all <br /> years thereafter. <br /> Recommendation <br /> Council approve payment to Norwest Investment Services, Inc. in the amount $25,932.60 <br /> ($28,814 less $2,881.40 for administrative expenses). <br /> It should be noted this process will be an annual occurrence until such time the debt is retired. <br /> • <br />