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• MEMORANDUM <br /> DATE: April 17, 1996 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: TAX INCREMENT/EVERGREEN TOWNHOMES <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 1995 H.R.A. audit, the TIF District's excess increment for '95 totals <br /> • $64,199.17 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, $50,173.09 in '94 and $59,058.24 in '95 <br /> (Totaling $135,163.33). <br /> Recommendation <br /> Council approve payment to Norwest Investment Services, Inc. in the amount of $64,199.17 <br /> Payments to date total $199,362.50. <br /> In previous payments to Norwest, 10% percent of each years revenues were retained to cover <br /> administrative expenses. The fund balance is now adequate to cover those costs which allows <br /> further payment of the principal & interest owed. <br /> Current projections show this payment will be an annual occurrence until year 2001 which is the <br /> last year of the district ('96 is the first year which principal was paid). <br /> • <br />