Laserfiche WebLink
N1 Ersl OR AND U M <br /> DATE: April 1, 1995 <br /> TO: Mike Morrison, City Manager <br /> FROINI: Roger Larson, Finance Director <br /> ITEM: TAX NCREMEENT/EVERGREEN TOWNHOMMS <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 1994 H.R.A. audit, the TIF District's excess increment for '94 totals <br /> $59,058.24 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 and $50,173.09 in '94 totaling $76,105.09). <br /> Recoinmendation <br /> Council approve payment to Norwest Investment Services, Inc. in the amount of $59,058.2 <br /> Payments to date total $135,161-33. <br /> It should be note this payment is the total tax increment collected fo'r,'95. In previous payments <br /> to Norwest, 10% percent of each years revenues were retained to cover administrative expenses. <br /> The fund balance is now adequate to cover those costs which allows f�rther'payment of the <br /> interest owed. <br /> Current projects .show this payment will be an annual occurrence until year 2001 which is the <br /> last year of the district with 1996 being the first year in which principal will be paid. <br />