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City Council Regular Meeting Minutes • April 23, 1996 Page 5 1 City is agreeing to provide Tax Increment Financing to assist Ste. Marie Company in 2 paying a portion of the purchase price. The net assistance after reimbursement of the 3 City's expected loss in-LGA will be 1.5 million. The City will issue bonds for a portion 4 of the funding and the other will be funded by HRA funds on hand. The bond issue is to 5 be structured to be payable over a 15-year term from the expected tax increment 6 generated from the CUB Foods Store. Conditions of the agreement are that Super Valu 7 agrees to construct the store and that the store will have a minimum market value for real 8 estate tax purposes of$4.5 million. Also that the market value of Lot 7 be maintained at 9 the current market value of$2.9 million to the year 2012. It is hopeful that Lot 7 will be 10 developed in the near future and itwill be revisited at that time. 11 Mayor Ranallo introduced Joan Ahrens of Super Valu and expressed his appreciation of 12 all the hard work she has done to keep the project moving forward. 13 Ms. Ahrens stated it was a pleasure to work with the City of St. Anthony and is very 14 excited to get the project going. She reported they hope to pre-close on Friday with the 15 money changing hands on Monday. It is anticipated the store will be open within one 16 year. There is much yet to be done including demolition, removal of asbestos and site 17 work. She noted the proposed store will be much like the new store in Maplewood on Highway 36 and White Bear Avenue. 19 Motion by Marks, second by Enrooth to approve Resolution 96-029, regarding approving 20 Execution and Delivery of Redevelopment Agreement and other Agreements in 21 connection with redevelopment of Apache Plaza Shopping Center. 22 Motion carried unanimously. 23 B. Resolution 96-030. re: Approval of Issuance of Chandler Place Refunding Bonds. 24 Mr. Gilligan explained this proposed issuance of revenue bonds will serve to refund 25 revenue bonds issued by the City in 1985 to finance the construction of Chandler Place. 26 The City will have no liability for the bonds and will only act as a conduit for the bonds. 27 It is anticipated the closing on the bonds will occur in May and the 1985 Bonds will be 28 redeemed on June 1 st. The satisfaction of the loan will be made by payment of$600,000 29 by the owner of Chandler Place and payment by the HRA to the owner,of St. Anthony 30 Health Center of$100,000 from tax increment revenue from the Chandler Place TIF 31 District upon completion of and expansion of the Health Center. 32 It was noted Mr. Miller and a representative from First Bank System Investment Services 33 were present at the meeting. Motion by Marks, second by Wagner to approve Resolution 96-020, relating to Chandler Place Project; authorizing the sale and issuance of Multifamily Housing Development 36 Refunding Revenue Bonds, Series 1996A (GNMA Collaterized - Chandler Place Limited