CC PACKET 07281998 - Laserfiche WebLink

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• MEMORANDUM DATE: July 15, 1998 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: HELLICKSON ADDITION/TIF PROJECT In July of 1993, the St. Anthony Housing and Redevelopment Authority (H.R.A.) entered into a redevelopment agreement to upgrade an area of the City known as the Hellickson Addition. The intention of the H.R.A. and the City was to assist with redevelopment of the property located .. at 3901 Silver Lake Road. The objectives of the project included: A. Securing prompt renovation of the property which at the time • included a portion, which was not in use. B. Secure additional employment opportunities. C. Increase the valuation of the property which decreases the tax burden. Pursuant to the contract, the H.R.A. issued a Limited Revenue Tax Increment Note in the amount of$130,000.00 at an interest rate of 9% per annum. Under the terms of the agreement, on August 1st and February 1st of each year, the H.R.A. is to make payment to the developer from tax increment monies generated by the district. The note will mature February 1, 2005 or until payment of the bond is completed. In July, the City received the first half tax settlement for 1998, which included tax increment revenues from the district totaling $13,143.22. Based on the contract the H.R.A. entered into, a payment is now due the developer. Jerry Gilligan from Dorsey & Whitney has confirmed the terms of the agreement. It should be noted that it is recommended that 10% of.each year's revenues be retained to cover administrative expenses associated with the project. Recommendation: The Housing and Redevelopment Authority approve payment to Raymond A. Hellickson in the amount of$11,828.90 ($13,143.22 less 10% retainage = $11,828.90).