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City Council Regular Meeting Minutes June 23, 2020 Page 2 1 A. Resolution 20-054: a Resolution Approving First Amendment to Contract for Private 2 Redevelopment between the Housing and Redevelopment Authority of St. Anthony, the 3 City of St. Anthony, and Doran SLV, LLC. 4 5 Mr. Keith Dahl, Ehlers & Associates made a presentation. 6 7 Councilmember Randle asked what guarantee the City has that Doran will follow through with 8 Phase II if this is pushed back with the TIF note all up front. He also wondered what securities 9 the City would have. Mr. Dahl explained the securities the City has is in the first amendment 10 and the TIF note will be reduced. The HRA is responsible for providing the assistance. The City 11 and the Antiquary are collecting the increment that is being generated from these properties and 12 paying ninety percent of the available tax increment that is collected to the developer. The 13 guarantee is that should Phase II not commence, the TIF note is going to be reduced by the 14 amount originally agreed to be provided to Phase II. It would be reduced by $1.35 million and 15 would revert back to the original agreed upon TIF note size for Phase I, which was $1.95 million. 16 There is that provision in the first amendment but then the City and HRA also retain the ability to 17 stop making payments should Phase II not commence. 18 19 Councilmember Webster indicated in part C there is verbiage that talks about the HRA would 20 allow the developer to sign the TIF note to an affiliate or Kelly J. Doran without approval and 21 she asked for an example of where that has happened in the past and what it might look like. Mr. 22 Dahl stated developers like to have several companies to hold on to a specific property. This is 23 pretty standard with most development projects across the Twin Cities. A developer will build it 24 under one name and then transfer it to a new entity under a different name but still affiliated all 25 with the same developer. This is done for tax purposes and liability sake. 26 27 Councilmember Jenson asked Mr. Dahl if he saw any risk in this proposal from a city standpoint. 28 Mr. Dahl indicated he did not because precautions were built in to ensure that Phase II will be 29 constructed and if it is not constructed it will be reverted back to the same agreed upon size of 30 the TIF note for Phase I. 31 32 City Manager Casey explained the City Attorney has also had the opportunity to review this and 33 they coincided with everything that Mr. Dahl and Ehlers has presented in regard to any risks the 34 City would have, and the securities provided. Also, for Phase II since there is both a contract 35 and an agreement, if there was any material change in what was presented for the Final PUD, 36 that would come back to the Council for any kind of approvals. What was presented is what 37 staff is anticipating being built. 38 39 Mayor Stille indicated the TIF Note amount is not changing by any means and the term of the 40 notes are also not changing but being consolidated into one. Mr. Dahl indicated that was correct. 41 42 Mayor Stille noted in the marketplace they have seen a lot of changes to contracts such as this, 43 not only cities but banks. In this case he really thought that the developers and the City's 44 interests are mutually aligned. 45