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' City Council Regular Meeting Minutes 16 September 23, 2003 Page 16 . 1 limited to the costs of the City consultants, financial analysis of the project and tax increment 2 plan, redevelopment and TIF district analysis and creation, legal fees, survey and title costs, 3 environmental review costs, environmental site investigation costs, etc. She noted the 4 redeveloper would be reimbursed for these costs and costs associated with acquiring and holding 5 the Apache Plaza property and other overhead as a qualified tax increment cost in an amount 6 currently estimated to be $2.645 million. 7 8 Ms. Kvilvang explained any cost savings by the redeveloper on negotiating the purchase, non- 9 statutory relocation payments and demolition of the three commercial properties for the Phase lA 10 for-sale housing component would be used to first cover any overruns in any other redeveloper 11 category and 50% of the remainder would be paid to the redeveloper and 50%made available to 12 the City and HRA for other public redevelopment costs. She noted the incentive fee would not 13 be payable to the redeveloper if they were in default under the Redevelopment Contract. 14 15 Ms. Kvilvang stated the City and HRA would provide the redeveloper with the$586,000 grant it 16 received from the Metropolitan Council for asbestos abatement at Apache Plaza. She added the 17 City and HRA would use its best efforts to obtain LCDA and tax-base revitalization grant 18 funding, in addition to any other available funding from Metropolitan, State and Federal 19 Sources. 20 21 Ms. Kvilvang indicated the master redeveloper would be paid a$1 million fee for the Phase I 22 development at the time of the closing of the land sale to each project element. She noted the 23 timing and conditions attached to payment of the fee. 24 25 Ms. Kvilvang explained the redeveloper may create and assign its development rights and the 26 right to enter into the Redevelopment Contract to a single-purpose entity to undertake the 27 project, without the consent of the City and HRA,provided Len Pratt and John Ordway continue 28 to hold a majority voting interest in the new entity. She added the redeveloper might thereafter 29 assign portions of the rights and obligations under the Redevelopment Contract to the 30 commercial,rental and for-sale developers, with the consent of the City and HRA,which would 31 not be unreasonably withheld. 32 33 Councilmember Sparks stated it was important to remind residents this information had been 34 given multiple times. 35 36 Ms. Kvilvang anticipated the Development Agreement would be brought to Council sometime in 37 October and noted it may require a special meeting. She added this was a great development for 38 the City, as it was physically prudent and met the overall redevelopment goals of the City. 39 40 Mayor Hodson noted this had been a partnership between residents, Council, development team, 41 staff, consultants and experts. He added everyone had worked well together to make this 42 happen. 43 44 Motion by Councilmember Horst to adopt Resolution 03-085 relating to the redevelopment of 45 property in Redevelopment Project Area No. 3 and authorizing the preparation, execution and 46 delivery of a contract for private redevelopment thereof. 47