Laserfiche WebLink
MEMORANDUM <br /> DATE: July 12, 1999 <br /> TO: Mike Mornson, City Manager <br /> FROM: .Roger Larson, Finance Director <br /> ITEM: HELLICKSON ADDITION/TIF PROJECT <br /> In July of 1993, the St. Anthony Housing and Redevelopment Authority (H.R.A.) entered into a <br /> redevelopment agreement to upgrade an area of the City known as the Hellickson Addition. <br /> The intention of the H.R.A. and the City was to assist with redevelopment of the property located <br /> at 3901 Silver Lake Road. The objectives of the project included: <br /> A. Securing prompt renovation of the property which at the time <br /> included a portion, which was not in use. <br /> . B. Secure additional employment opportunities. <br /> C. Increase the valuation of the property which decreases the <br /> tax burden. <br /> Pursuant to the contract, the H.R.A. issued a Limited Revenue Tax Increment Note in the <br /> amount of$130,000.00 at an interest rate of 9% per annum. Under the terms of the agreement, <br /> on August lst and February 1st of each year, the H.R.A. is to make payment to the developer <br /> from tax increment monies generated by the district. The note will mature February 1, 2005 or <br /> until payment of the bond is completed. <br /> In July, the City received the first half tax settlement for 1999, which included tax increment <br /> revenues from the district totaling $12,246.52. Based on the contract the H.R.A. entered into, a <br /> payment is now due the developer. <br /> Jerry Gilligan from Dorsey & Whitney has confirmed the terms of the agreement. It should be <br /> noted that it is recommended that 10% of each year's revenues be retained to cover <br /> administrative expenses associated with the project. <br /> Recommendation: <br /> The Housing and Redevelopment Authority approve payment to Raymond A. Hellickson in the <br /> amount of$11,021.87 ($12,246.52 less admininstration retainage = $11,021.87). <br /> _ 1 <br />