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D:�) HORSEY <br /> • cost approximately $1,430,000. They will be reimbursed by the City and HRA <br /> for a portion or all of the site/ponding improvements through Park Dedication <br /> Fees generated from the development (estimated at $205,000), any grants the <br /> City may receive and from Tax Increment. The site improvements will be <br /> phased over time if the City does not receive the $900,000 in LCDA funds it <br /> requested from the Metropolitan Council. The Development and other benefited <br /> properties will be assessed for the costs associated with maintaining the storm <br /> water ponds and the City will be responsible for maintaining the open space <br /> around the storm water ponds. <br /> 5. Miscellaneous <br /> a. City Liquor Store. The Developer will construct and furnish a new Municipal <br /> Liquor Store within the commercial development. The New Liquor Store is to be <br /> constructed prior to demolition of the existing store so as to cause minimal <br /> disruption to the City's Liquor operation. Since Tires Plus will be required to <br /> relocate their business, the City will work with them to find a suitable site to <br /> relocate to. The City commits to condemn the Tires Plus lease if necessary to <br /> clear title. The Developer will pay the cost to relocate the existing Tires Plus <br /> building and the cost to construct the new Liquor Store, up to an amount <br /> currently anticipated to be $1,700,000. <br /> b. Cub Foods. The Developer has a signed purchase agreement for the existing Cub <br /> Foods store for $10,850,000, inclusive of the restrictive property covenants. The <br /> • Developer intends to rehabilitate the store to upgrade its appearance to the design <br /> standards of the new commercial development that is estimated to be $580,000. <br /> Therefore, the Authority has approved these items as an approved Developer <br /> expense. <br /> In addition, the City agrees that absent this sale, the property was "under threat of <br /> condemnation" and would consider taking all necessary actions to acquire the site if <br /> the acquisition had not been negotiated. <br /> C. Commercial Property Acquisition. The Developer has requested assistance in <br /> acquiring the three commercial properties that the Phase IA For Sale Housing <br /> units will be located upon (Apache Squares, Apache Office and JA Cadawallader <br /> Office). Fannie Mae is willing to provide a non-revolving line of credit to assist <br /> in acquisition. Fannie Mae will require, as collateral, a pledge of funds from the <br /> City. The Authority may also require a Developer Guarantee and a portion of the <br /> land as collateral. It is anticipated that the City will utilize funds from the Water <br /> Filtration Fund to utilize as collateral for the loan and will not be required to <br /> provide its General Obligation Taxing Authority. All closing costs associated <br /> with the loan are the responsibility of the Developer or For Sale Housing <br /> Developer and must be paid directly by such at the loan closing. <br /> The Developer will be required to have 20% of the units in the first Phase IA building <br /> sold prior to the City considering advancing the loan funds from Fannie Mae. In <br /> addition the Developer will need to have obtained the construction financing for the <br /> land prior to advancement of the loan. <br /> • <br /> 4 DORSEY&WHITNEY LLP <br />