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• Mike Morrison -Northwest Quadrant Redevelopment <br /> September 17,2003 <br /> Page 4 <br /> Large Retailer: $1,200,000 Paid up front or completion of roadway <br /> Small Commercial: $500,000 Assessed over term of bonds <br /> Phase IA For Sale Housing: $325,000 Paid at sale of units <br /> Benefiting properties: $175,000 Assessed over term of bonds <br /> TOTAL $2,205,000 <br /> The City will most likely be required to sell temporary bonds (1-year call date) to pay for <br /> the construction up front then refinance the bonds once any prepaid special assessments are <br /> received. Any amount in excess of the anticipated amount of$2.205 million will be paid <br /> through Tax Increment generated from the project. <br /> b. Site Improvements/Open Space. The Redeveloper will pay for the open space/ponding <br /> and site improvements, which are estimated to cost approximately $1,430,000. They will <br /> be reimbursed by the City and HRA for a portion or all of the site/ponding improvements <br /> through Park Dedication Fees generated from the development (estimated at $205,000), <br /> any grants the City may receive and from Tax Increment. The site improvements may be <br /> phased over a three (3) year period if the City does not receive the $900,000 in LCDA <br /> funds it requested from the Metropolitan Council. The phasing of the site improvements <br /> • will allow the Development Team to pay for the improvements as cash becomes available. <br /> The Development will be responsible for the costs associated with maintaining the storm <br /> water ponds and the City will be responsible for maintaining the open space around the <br /> storm water ponds. The City and Redeveloper are currently discussing coordination and <br /> responsibility for the maintenance,etc. <br /> 4. Miscellaneous. <br /> a. City Liquor Store. The Redeveloper will construct and furnish a new Municipal Liquor <br /> Store within the commercial development. It is anticipated that the Liquor Store will be <br /> constructed prior to demolition of the existing store so as to cause minimal disruption to <br /> the City's Liquor operation. Since Tires Plus will be required to relocate their business,the <br /> City will work with them to find a suitable site to relocate to. It should be noted that the <br /> City may need to condemn the Tires Plus lease if deemed necessary by the City Attorney. <br /> The Redeveloper will pay the cost to relocate the existing Tires Plus building and the cost <br /> to construct the new Liquor Store,up to an amount not to exceed$1,700,000. <br /> b. Cub Foods. The Redeveloper has a signed purchase agreement for the existing Cub Foods <br /> store for $10,850,000, inclusive of the restrictive property covenants. The Redeveloper <br /> intends to rehabilitate the store to upgrade its appearance to the quality of the new <br /> commercial development. It is estimated the cost of this "face lift" will be $580,000. The <br /> agreed upon purchase price of the store does not allow the Redeveloper to obtain any more <br /> debt on the property. <br /> • <br />