02-12-2001 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes February 12.2001 Page 2 Commissioner Motin noted that he would abstain from voting as Sportech is a client of his. THE MOTION CARRIED 3-0-1. COMMISSIONER MOTIN ABSTAINED. Commissioner Klinzing arrived at this time. 6. Consider TIF 19 Contract for Private Redevelopment -Initial Improvements Finance Director Lori Johnson explained that the EDA entered into a Contract for Private Redevelopment between the EDA and Associated Investors of Elk River, Fisher Sand & Aggregate, LLP, and Elk River Business Park, LLC (Redeveloper) on July 30, 1999. The Contract requires the Redeveloper to meet certain building construction requirements to be eligible for Tax Increment Financing assistance from TIF 19. Lori stated that because the Redeveloper did not meet the requirements of the "Initial Improvements" which were to have been completed by December 31, 2000, staff is requesting that the EDA take action on this default. Lori explained that the initial improvements required that 140,000 square feet of retail/commercial space be constructed by December 31, 2000, and, as of that date, there were 120,327 square feet already occupied (Home Depot) and another 140,991 square feet very near completion (Wal-Mart). The initial improvements also required construction of 50,000 square feet of industrial space. She noted that although a 50,687 square foot industrial building is currently under construction and may be completed in the next few weeks, it was not completed by December 31, 2000, as required by the agreement. fie City Attorney discussed the remedies available to the redeveloper and recommended that a notice of default be sent to the redeveloper. Rick Martins, Brookstone Inc., a representative of the redeveloper, gave an update on the status of the project. He also reviewed the history of why the project is slightly behind schedule. He indicated that is their intention to review the agreements and to comply to the best of their ability. COMMISSIONER DWYER MOVED TO PUT THE REDEVELOPER ON FORMAL NOTICE OF THE EVENT OF DEFAULT BY MAILING THE LETTER DRAFTED BY THE CITY ATTORNEY. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider TIF 17 -TIF Assignment Executive Director Catherine Mehelich explained that on January 3, 1999, the EDA entered into a Limited Revenue Tax Increment Note with David Decker for the TIF 17 development project. She indicated that Mr. Decker has requested that the Note be assigned to Rivers Crossing, Inc. COMMISSIONER MOTIN MOVED TO APPROVE THE ASSIGNMENT OF LIMITED REVENUE TAX INCREMENT NOTE FOR TIF 17 FROM DAVID DECKER TO RIVERS CROSSING, INC. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0.