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MEMORANDUM <br /> DATE: May 10, 1994 <br /> TO: Larry Hamer, Interim 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 1993 audit, the TIF District's excess increment for '93 totals $55,747.88 <br /> and is 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 administration costs incurred by the H.R.A. His recommendation is <br /> a set percentage of 10% of each years revenue be retained to cover administrative expenses. <br /> Last years payment totaled $25,932.60 (payments to date now total $76,105.69). <br /> Recommendation <br /> Council approve payment to Norwest Investment Services, Inc. in the amount of $50,173.09 <br /> ($55,747.88 less $5,574.79 for administrative expenses). <br /> It should be noted this payment will be an annual occurrence until such time the debt is retired. <br /> 3 <br />