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Economic Development Agenda Memo <br /> April 8, 1999 <br /> Page 3 <br /> • as that of the Brown property. The EDA's proposed funding source <br /> would be the development fund. The development fund would then be <br /> reimbursed over time from Tax Increment District No. 19. <br /> 5a. TIF 19 <br /> Staff and City Attorney Peter Beck are continuing to negotiate the <br /> details of the redevelopment agreement with Associated Developers for <br /> redevelopment of the former Hohlen Mobile Home Park and <br /> construction of the East Business Park. <br /> Staff has spent a great deal of time over the past couple of months <br /> working with Springsted to develop cash flow projections with which <br /> all involved parties appear to now be comfortable. These cash flow <br /> projections are driving the development agreement, because they show <br /> how much tax increment may be available to pay the developer <br /> incentive after other priority obligations have been paid, such as our <br /> annual debt service on general obligation bonds. The cash flow also <br /> projects how much may be available to be spent outside the boundaries <br /> of TIF District No. 19 for the purchase of the Brown and Kirkeide <br /> properties. <br /> 411 <br /> A deal with potential major users of the commercial development has <br /> not yet been completed. Associated Developers is continuing to work <br /> with these potential tenants to gain their commitment to build a <br /> project on this site. Staff and the developers are continuing to work on <br /> the development agreement and other issues fully expecting that a <br /> deal with a commercial tenant will be signed. However, until such a <br /> deal is signed there is no "project" to produce the anticipated tax <br /> increment. Tony Gleekel, Associated Developers,has indicated he is in <br /> ongoing discussions with at least one potential major tenant for their <br /> commitment to the project. <br /> 6. Post Office Relocation <br /> Attached to this memo are two letters dated March 26 and March 31 <br /> from the United States Postal Service regarding their site search for a <br /> new postal facility. These letters indicate the following: <br /> • All sites rejected from further review with the exception of <br /> that which is located at the northeast corner of the <br /> intersection of County Highway 12 and 13 (Mulvaney <br /> • property). <br />