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HORSEY <br /> • Executive Director from the Developer to other developers for the Phase I for Sale Housing and <br /> Rental Housing and the Phase II For Sale Housing. <br /> 3. Tax Increment <br /> a. Creation of a Redevelopment TIF District. The City and HRA have created a <br /> Redevelopment TIF District. The City is not required to request certification of <br /> the District until the Agreement is executed. <br /> b. Administration Expense Allocation. Currently all TIF calculations show 5% of <br /> available Tax Increment being available for administration. To the extent that <br /> the development will require more than 95% of the TIF for actual redevelopment <br /> costs or coverage of bonds, the City may elect to subordinate its 5% <br /> administration until the entire development comes on line. In the alternative, if <br /> there is excess increment, the City may increase its administration amount to the <br /> statutory limit of 10%. <br /> C. TIF Notes. The Development Team will finance development costs up front and <br /> they will request the City to "take them out" after the development is completed <br /> through the issuance of Tax Exempt TIF bonds. This is a tool that is used in <br /> many of the metropolitan communities to assist developers with development and <br /> is a low risk proposition for the City and HRA, since the developments will be <br /> constructed and paying taxes when the HRA is issuing these bonds. These bonds <br /> will not be General Obligations of the HRA. <br /> • 4. Public Improvements <br /> a. Roadway and Sanitary Sewer Improvements. 39`h Avenue will be reconstructed <br /> from Silver Lake Road to Stinson Boulevard and upgrades will be made to the <br /> sanitary sewer lines as well. It is anticipated that it will cost approximately <br /> $2.205 million to complete these improvements and the cost will be assessed to <br /> and paid for by the development and other benefiting properties within the TIF <br /> District as follows: <br /> Large Retailer: $1,205,000 Paid up front on 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 /> Any amount in excess of the anticipated amount of$2.05 million will be paid through <br /> Tax Increment generated from the project. The City will be responsible for designing <br /> these improvements in time for an anticipated 2004 construction commencement date <br /> consistent with the timing of the private development. Construction by the City will <br /> only need to commence when the City has received adequate assurances that the For <br /> Sale Housing Developer and Commercial Developer are ready to commence <br /> construction and have secured equity and debt financing satisfactory to the HRA. <br /> • b. Site Improvements/Open Space. The Developer or Commercial Developer will <br /> pay for the open space/ponding and site improvements, which are estimated to <br /> 3 DORSEY&WHITNEY LLP <br />