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EHLERS <br /> • & SsOC � ,,- E , MEMORANDUM <br /> TO: Catherine Mehelich, City of Elk River <br /> FROM: Sid Inman,Ehlers and Associates Inc <br /> DATE: January 26,2004 <br /> RE: Industrial Business Parks-Development Agreement Points <br /> A master development agreement with the EDA would be established as to the terms and conditions of <br /> the assistance,and it would apply to each lot assisted. The agreement could include: <br /> 1. An estimate of the square feet of building that would take place. <br /> 2. An estimate of the timing of the building that would take place. <br /> 3. An estimate of the assessor's market value of the building that would take place. <br /> 4. Establish the total cost per square foot to develop the site including: <br /> a. Amount to be paid to the landowner. <br /> b. Amount of current special assessments. <br /> c. Amount of future special assessments. <br /> d. Park Dedication Fees <br /> e. Other City fees passed on to the buyer at land sale. <br /> f. Annual cost to the landowner of carrying the project. <br /> • 5. A"but for"analysis requirement for 4. a. above. <br /> 6. A look back provision that will review the"but for"analysis after the project is complete. <br /> 7. Establish the"Gap"per square foot that the EDA or City would use assistance for. <br /> 8. Assistance could be Tax Increment from the EDA or Tax Abatement from the City. <br /> 9. Assistance for"Gap"would be pay as you go notes. <br /> 10. Pay as you go notes could be held by landowner or passed on to the buyer. <br /> 11. Level of assistance would also be based on jobs. <br /> 12. Level of assistance would also be based on quality and size of building. <br /> 13. Public Improvements may include City assessment bonds. <br /> 14. If assessment bonds were issued, assistance would first go to bond payments. <br /> 15. 80%or 90%of the assistance is available to the development. <br /> 16. As soon as all eligible and agreed upon costs are paid,the assistance would stop. <br /> 17. The terms would be reviewed annually. <br /> 18. The contract would be for a term equal to the estimated build out schedule of the park. <br /> An individual development agreements would be established each time a lot is developed based on the <br /> master development agreement and specific to the lot developed. <br /> Please let me know if you have questions or comments. <br />