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14 <br /> City Council Regular Meeting Minutes <br /> September 23, 2003 <br /> Page 14 <br /> 1 Ms. Kvilvang noted financing for Phase I had been discussed over the last few meetings. She <br /> 2 explained a detailed analysis was completed, which looked at development performance, land <br /> 3 prices, construction costs and standards. She added the tax increment financing was going <br /> 4 toward"qualified costs,"which were statutory costs such as land acquisition, demolition, <br /> 5 environmental issues, relocation, etc. <br /> 6 <br /> 7 Ms. Kvilvang stated one of the questions asked was why public assistance should be provided. <br /> 8 She indicated the assistance was needed and warranted. She added this site would have been <br /> 9 developed many years ago if it were "such a great site." She indicated Council wanted this <br /> 10 development to be successful, as it would increase values, say good things about the community <br /> 11 and provide the opportunity for the district to end earlier than planned. <br /> 12 <br /> 13 Ms. Kvilvang explained and detailed the money sources and costs for the components of Phase I. <br /> 14 She noted the for-sale urban flats would be paying an average of$10,000 per unit; however, it <br /> 15 was divided among the two phases to allow the initial phase to pay less for land up front to allow <br /> 16 the developer the flexibility to address any market issues and legal, financing and design issues <br /> 17 occurring disproportionately in the first phase. <br /> 18 <br /> 19 Ms. Kvilvang stated 39`h Avenue would be reconstructed from Silver Lake Road to Stinson <br /> 20 Boulevard and upgrades would be made to the sanitary sewer lines as well. She anticipated it <br /> 21 would cost approximately$2.205 million to complete these improvements and the cost would be <br /> 22 assessed to and paid for by the development and other benefitting properties within the TIF <br /> 23 district. <br /> 24 <br /> 25 Ms. Kvilvang explained the redeveloper would pay for the open space/ponding and site <br /> 26 improvements, which were estimated to cost approximately$1.43 million. She stated the City <br /> 27 and HRA would reimburse them for a portion or all of the site/ponding improvements through <br /> 28 Park Dedication Fees generated from the development, which were estimated at$205,000, any <br /> 29 grants the City might receive and from tax increment. She added the site improvements might <br /> 30 be phased over a three-year period if the City did not receive the $900,000 in LCDA funds it <br /> 31 requested from the Metropolitan Council. She noted phasing of the site improvements would <br /> 32 allow the development team to pay for the improvements as cash became available. She <br /> 33 indicated $325,000 of the cost had not yet been identified. <br /> 34 <br /> 35 Ms. Kvilvang noted the redeveloper would construct and furnish a new municipal liquor store <br /> 36 within the commercial development. She anticipated the liquor store would be constructed prior <br /> 37 to demolition of the existing store, causing minimal disruption to the City's liquor operation. <br /> 38 She added the City would work with Tires Plus to find a suitable location for their business. She <br /> 39 noted the redeveloper would pay the cost to relocate the existing Tires Plus building and the cost <br /> 40 to construct the new liquor store, up to an amount not to exceed $1.7 million. <br /> 41 <br /> 42 Ms. Kvilvang indicated the redeveloper had a signed purchase agreement for the existing Cub <br /> 43 Foods store for$10.85 million, inclusive of the restrictive property covenants. She stated the <br /> 44 redeveloper intended to rehabilitate the store to upgrade its appearance to the quality of the new <br /> 45 commercial development at an estimated cost of$580,000. <br /> 46 <br />