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Mike Morrison May 15, 2003 Page 3 for the amount of land needed for the park and to assign a price per square foot for it. This will then be reviewed by Ehlers to determine if the purchase price is within market ranges. It is anticipated that the City will apply for funding from the Metropolitan Council through the Livable Communities Grant program to pay for this cost. In addition, discussions are continuing on the extent of park improvements the City would like on the site, including the size and the amenities, so a cost can be attributed to these improvements. c. City Bonds. No City GO Debt will be issued for the public improvements until a Development Agreement has been formally approved by the City Council and the City is certain of the timing of the various development components. In the event the City issues 'General Obligation Debt, Ehlers recommends that any bonds notes or other TIF payments made to the developer be junior(paid after)to the City's debt. 3. Miscellaneous. a. City Liquor Store. Discussions continue on the purchase of the City-owned Liquor Store. The City is currently having an appraisal 'completed for the property to assist in determining the Fair Market Value for the property. In addition,the City staff is discussing where they would like to locate the new store within the TIF District. It is anticipated that the City will not sell its land to the developer until a new Liquor Store is constructed, so as to not disrupt business. Outstanding issues for the Liquor Store revolve around disposing of the property via a sale, land swap, etc. It is anticipated this will be resolved after the appraisal is received and the City determines its choice for anew location. b. Grants. The City will use it's best efforts to obtain LCDA and Tax Base Revitalization grant funding and any other available funding from Metropolitan, Sate and Federal Sources. c. Land Purchase Price. Purchase price of land for each use will be reviewed and must be shown to be at market and similar to what other projects are paying. d. "But For" Analysis. Ehlers recommends that prior to final determination of Tax Increment assistance that will be provided that a "But For" analysis be preformed to ascertain appropriate level of assistance. The elements of this transaction are within industry standards that Ehlers and Associates have seen within the Metropolitan Area on these types of developments. At this time, we anticipate that a final Development Agreement will be brought before the HRA in July 2003 for consideration and approval. Please contact Sid Inman or I at 651-697-8500 with any questions. cc: File