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City Council Regular Meeting Minutes March 14, 2006 Page 3 1 Stacie Kvilvang, Ehlers & Associates, Inc., stated the redevelopment agreement with Apache 2 Redevelopment LLC noted that upon successful completion. of any element of the 3 redevelopment, the City / HRA would issue tax exempt debt to refund and ay existing taxable p p g 4 TIF notes. Construction has been completed and taxes are being paid on the property. She 5 added the City can get better rates as well as additional funds to do other projects, and over time 6 the City will have the option to close down the district early. Bonds will be sold in early April. 7 She stated Ehlers has a look back provision in which they review a project to see if the amount of 8 public assistance given was needed and/or warranted. Certain items came in under budget and 9 although some of the savings will go to other project cost overruns, some will assist in reducing 10 the principal amount on the note. She noted the proposed resolution is giving authority for future 11 issuance of bonds, with the principal not exceeding $5.8 million. 12 13 Councilmember Thuesen asked regarding the look back provision, historically, has more projects 14 than not used less TIF than asked for. Ms. Kvilvang replied projects have been all over the 15 board; unanticipated items have come up on some and typically commercial comes in close to 16 budget because of construction timelines. 17 18 Councilmember Thuesen asked what is the incentive for a developer to come in under the TIF 19 amount. Ms. Kvilvang replied a developer usually says they want only the amount of assistance 20 they need to get a project done because they need to answer to the public. 21 . 22 Mr. Mornson asked if the phases will be done separately or will be combined. Ms. Kvilvang 23 replied it depends on the timing. She added she anticipates Phase 1 A housing will be done later 24 this year or next year and combined with 2007 projects. This needs to be monitored so that the 25 City does not go over their debt qualification for this year. 26 27 Councilmember Stille asked about profit sharing. Ms. Kvilvang replied this portion comes into 28 play mostly with for sale housing where the developer has anticipated the profit level around 29 12%, and if the sources are less they will have sharing between 12-15%. 30 31 Motion by Councilmember Horst, seconded by Councilmember Thuesen, to adopt Resolution 32 06-029, re: approve the sale of TIF revenue bonds for Silver Lake village. 33 34 Motion carried unanimously. 35 36 C. Consider Resolution 06-03 0, re: police contract with City of Lauderdale. 37 Mr. Mornson reviewed the resolution with the Council and indicated that this is a j oint powers 38 agreement for police services with the City of Lauderdale. He noted although previously the 39 agreement has been for a two-year term this resolution agreement is for a three-year term. 40 Currently, services cost is $255,254, for 2007 they will be $269,300, for 2008 they will be 41 $284,100, and for 2009 they will be $299,725. He added a joint powers .agreement for police 42' services with the City of Falcon Heights will be brought to Council for approval next month. 43 44 Motion by Councilmember Thuesen, seconded by Councilmember Stille, to adopt Resolution 06- 45 030, re: police contract with City of Lauderdale. 46 47 Motion carried unanimous .