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43 <br /> DORS EY & WHITNEY L L P <br /> MINNEAPOLIS SUITE 1500 COSTA MESA <br /> NEW YORK 50 SOUTH SIXTH STREET BILLINGS <br /> SEATTLE MINNEAPOLIS, MINNESOTA 55402-1498 FARGO <br /> DENVER. - HONG KONG <br /> TELEPHONE: (612) 340-2000 <br /> WASHINGTON,D.C. GREAT FALLS <br /> FAX: (6 12) 340-2868 _ <br /> NORTHERN VIRGINIA ROCHESTER <br /> DES MOINES www.dorseylawxom TOKYO <br /> LONDON JEROME P. GILLIGAN MISSOULA <br /> ANCHORAGE (612)340-2962 VANCOUVER <br /> SALT LAKE CITY FAX(612) 340-2643 - TORONTO <br /> BRUSSELS gUligan.Jerome @dorseylaw.Oom SHANGHAI <br /> October 23, 2001 <br /> Mr. Roger Larson <br /> Finance Director <br /> City of St. Anthony <br /> 3301 Silver Lake Road N.E. <br /> St. Anthony, MN 55418-1603 <br /> Re: Contribution by Ste. Marie Company to City <br /> • Dear Roger: <br /> The City, the St. Anthony HRA and Ste. Marie Company, the owner of Apache Plaza <br /> Shopping Center, entered into an Agreement, dated as of April 1, 1996, pursuant to which the <br /> HRA agreed to provide $1,800,000 in tax increment assistance to pay a portion of the purchase <br /> price of the CUB store site in connection with the sale of such site to SUPERVALU INC. by <br /> Ste. Marie Company. Upon payment of such assistance by the HRA, Ste. Marie Company made <br /> a contribution to the City in the amount of$300,000. This contribution was required by Section <br /> 3.3 of the Agreement which reads as follows: <br /> "Section 3.3 Contribution to City. The Company agrees that upon <br /> payment to it of the amount provided in Section 3.1 it will immediately <br /> make a contribution to the City in the amount of$300,000. The Company <br /> agrees that such contribution may be applied by the City in any manner as <br /> it shall determine." <br /> The purpose of the contribution by Ste. Marie Company was to reimburse the City for the <br /> estimated reduction in Local Government Aid ("LGA") to be received in future years by the City <br /> as a result of the existence of the Apache Plaza TIF district. Under Minnesota Statutes, Section <br /> 273.1399, tax increment generated by the Apache Plaza TIF District resulted in a reduction in <br /> LGA to the City based upon the formula set forth in this section(the"LGA Penalty"). It is my <br /> understanding that the City has accounted for this contribution separately on its books and has <br /> • applied money from the contribution to reimburse it for its annual LGA Penalty as a result of the <br /> Apache Plaza TIF District. Now that this LGA Penalty has been eliminated as part of the change <br />