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8S E.SEVENTH PLACE,SUITE 100 <br /> SAINT PAUL,MN SS101-2887 <br /> 6S1-223-3000 FAX:6SI-223-3002 SPRINGSTED <br /> • Public Finance Advisors <br /> MEMORANDUM <br /> TO: Mike Mornson, City Manager; Mayor and City Council - St. Anthony Village <br /> FROM: Paul T. Steinman, Vice President/Client Representative <br /> CC: j Robert Thistle, Senior Vice President <br /> DATE: July 28, 2000 <br /> SUBJECT: Apache Redevelopment <br /> The purpose of this memo is to discuss the public comments provided at the meeting on July 25, 2000, to <br /> answer a number of points made by Mr. Raymond Haik in his memo dated August 1, 2000, and to <br /> summarize Springsteds' recommendations with regard to the Hillcrest redevelopment proposal. <br /> The public comments at the meeting on the 25" and the letter by Mr. Haik likely created additional questions <br /> about this project. Unfortunately the comments and letter make few accurate representations about the <br /> project, although this public input is welcomed and encouraged. <br /> What follows is my response to several points raised during the public hearing: <br /> • Neither the City nor HRA are issuing bonds for this project. <br /> • The only up-front payment made will be the $300,000 provided by the HRA toward storm water <br /> improvements, and the funds will not be released until all the storm water improvements (at a <br /> potential total cost of$1 million) are completed to the satisfaction of the City. <br /> • The pay-as-you-go note to be issued to the developer is NOT a general obligation. of the city, <br /> thereby eliminating most of the financial risk associated with the project. <br /> • The current basic structure of the project is as follows: <br /> ♦ Provide pay-as-you-go tax increment to the developer in the amount of approximately $4 million <br /> (9.5% present value) or approximately$10 million gross. <br /> ♦ Provide additional pay-as-you-go tax increment to the developer, up to $750,000, for storm water <br /> improvements to cover the difference between the total cost and the amount the HRA pays up <br /> front. <br /> ' ♦ <br /> --Decertify the District at the end of year 2018. <br /> • • The pay-as-you-go note is detailed as follows: <br /> SAINT PAUL.MN • MINNEAPOLIS,MN • MILWAUKEE.WI • OVERLAND PARK,KS WASHINGTON,DC • DES MOINES,IA <br />