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MEMORANDUM <br /> DATE: May 14, 1997 <br /> TO: Mike Mornson, 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 financed by tax increment 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 1996 H.R.A. audit, the TIF District's excess increment for '96 totals <br /> $68,260.59 and is payable per the agreement. Jerry Gilligan from Dorsey & Whitney has <br /> confirmed the terms of the agreement. <br /> Past year payments included $25,932.00 in '93, $50,173.09 in '94, $59,058.24 in '95 and <br /> $64,199.17 in '96 (Totaling $199,362.50). <br /> Recommendation <br /> Council approve payment to Norwest Investment Services, Inc. in the amount of $68.260.59 <br /> ($21,658.48 interest and $46,602.11 principal). Payments to date total $267,623.09. <br /> In previous payments to Norwest, 10% percent of each years revenues were retained to cover <br /> administrative expenses. The fund balance is now adequate to cover those costs which allows <br /> further payment of the principal & interest owed. <br /> Current projections show this payment will be an annual occurrence until year 2001 which is the <br /> last year of the district (the remaining principal after this payment totals $185,923.61). <br />