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<br />EHLERS
<br />& ASSOCIATES INC
<br />On December 19, 2003, the City and HRA entered into a Redevelopment Contract with
<br />Apache Redevelopment LLC. Per the Redevelopment Contract, 39°i Avenue was to be
<br />reconstructed at a cost of $2,205,000, of which $1,705,000 was to be assessed to the
<br />commercial property, $325,000 to the for -sale housing and $175,000 to other benefiting
<br />properties.
<br />At the time the Agreement was completed, it was estimated/anticipated that the anchor tenant
<br />(WalMart) would pay $1,205,000 of the $1,705,000 of commercial assessments in a lump sum
<br />and the remaining $500,000 would be assessed to the other new commercial properties over a
<br />15 -year period. Based upon this, the City agreed to -ell temporary bonds to finance the
<br />project, with the knowledge that 100% of the costs were going to be assessed to benefiting
<br />properties in the area and that the city world refinance the remaining portion of the bonds atter
<br />the anchor tenant paid their assessment in a lump sum (anticipated they would pay at the time
<br />of opening).
<br />Since the commercial development is nearing completion, the Commercial Developer has
<br />requested that the final special assessment amounts for the anchor tenant and other commercial
<br />properties be changed to reflect their actual prorated share of assessments based upon their
<br />actual square footage as follows (also see attached map):
<br />As noted, there is no change in the amount of assessments for the commercial property, just
<br />the amount that is assessed to each building/user.
<br />LEADERS IN PUBLIC FINANCE
<br />3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555
<br />Roseville, MN 55113-1105 skvilvang@ehlers-inc.com
<br />To:
<br />Mike Morrison —
<br />City Manager
<br />Frotn:
<br />Stacie Kvilvang
<br />— Associate Financial Advisor
<br />Date:
<br />March 29, 2005
<br />Subject:
<br />Third Amendment to Development Agreement With Apache
<br />Redevelopment
<br />LLC - Reallocation of Special Assessment Amounts
<br />On December 19, 2003, the City and HRA entered into a Redevelopment Contract with
<br />Apache Redevelopment LLC. Per the Redevelopment Contract, 39°i Avenue was to be
<br />reconstructed at a cost of $2,205,000, of which $1,705,000 was to be assessed to the
<br />commercial property, $325,000 to the for -sale housing and $175,000 to other benefiting
<br />properties.
<br />At the time the Agreement was completed, it was estimated/anticipated that the anchor tenant
<br />(WalMart) would pay $1,205,000 of the $1,705,000 of commercial assessments in a lump sum
<br />and the remaining $500,000 would be assessed to the other new commercial properties over a
<br />15 -year period. Based upon this, the City agreed to -ell temporary bonds to finance the
<br />project, with the knowledge that 100% of the costs were going to be assessed to benefiting
<br />properties in the area and that the city world refinance the remaining portion of the bonds atter
<br />the anchor tenant paid their assessment in a lump sum (anticipated they would pay at the time
<br />of opening).
<br />Since the commercial development is nearing completion, the Commercial Developer has
<br />requested that the final special assessment amounts for the anchor tenant and other commercial
<br />properties be changed to reflect their actual prorated share of assessments based upon their
<br />actual square footage as follows (also see attached map):
<br />As noted, there is no change in the amount of assessments for the commercial property, just
<br />the amount that is assessed to each building/user.
<br />LEADERS IN PUBLIC FINANCE
<br />3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555
<br />Roseville, MN 55113-1105 skvilvang@ehlers-inc.com
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