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EDA Agenda Memo <br /> July 12, 1999,Meeting <br /> Page 4 <br /> • <br /> Article 3 of the enclosed Contract for Private Redevelopment describes <br /> the business aspects of the agreement. A summary of such business <br /> aspects of this agreement is as follows: <br /> • Total tax increment incentive to developer - $2.811 million. <br /> • A maximum of$300,000 to be provided as an up front <br /> incentive at the time of issuance of the building permits far <br /> the initial improvements, which include construction of the <br /> first big box retail unit and a 50,000 square foot industrial <br /> building. <br /> • Approximately $2 million of tax increment will be used to <br /> reimburse the city for various public improvement costs <br /> incurred within the TIF District, i.e., construction of lift <br /> station, utility improvements, internal loans the city has <br /> taken in order to finance the $300,000 up front payment to <br /> developer, and that portion of the street project that lies <br /> within the TIF District boundaries. <br /> • An additional approximately $4 million will be used to pay <br /> interest on the debt necessary to fund these land acquisition <br /> and public improvement costs. <br /> • • Approximately$1 million will be used (no more than 10% of <br /> the total TIF generated) for costs incurred by the city outside <br /> the TIF District including costs to acquire the <br /> Brown/Kirkeide land and pay assessments on the Brown <br /> land. <br /> • Payment of tax increment to the developer is conditioned <br /> upon the developer meeting certain goals of development of <br /> the business park property to the south of TIF District No. 19 <br /> including: <br /> — completion of a total of 50,000 square feet by <br /> December 31, 2000. <br /> - completion of a total of 75,000 square feet of industrial <br /> space by December 31, 2002. <br /> - completion of a total of 1250,000 square feet of <br /> industrial space by December 31, 2004. <br /> — completion of a total of 175,000 square feet of <br /> industrial space by December 31, 2006. <br /> - completion of a total of 200,000 square feet of <br /> industrial space by December 31, 2008. <br /> • Full build out of the business park is closer to 300,000 square <br /> feet, and the developer will be required to provide a concept <br /> III plan showing total build out of expansion space over and <br /> above what the EDA is requiring in each of the given years. <br /> • The penalty to the developer for not having met goals of <br /> development of the business park is that 50 percent of the <br />