5.0. 6.0. 7.0. EDSR 07-12-1999 - Laserfiche WebLink

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EDA Agenda Memo July 12, 1999,Meeting Page 5 • tax increment owed to the developer in any given year will be withheld until business park goals are met. • No payment will be made to the redeveloper unless there is "available tax increment "-with which to make the payment available tax increment is tax increment received by the city that remains available after the city and EDA have made payment of the following priority items. - administrative expenses. - state auditor's deduction. - scheduled payments on the bond requirements issued by the city or planned to be issued by the city in the principal amount of approximately $1.4 million. - scheduled payments on all internal loans entered into to finance portions of the public improvement costs - funding of the debt service reserve account. • The above listed payment of priority items are on an annual basis, not in aggregate, so the developer will potentially receive some annual tax increment after the city and EDA have paid their annual debt service on the priority items. The most likely scenario for construction will be that the first big box 1110 retail and the 50,000 square foot industrial building will begin in the spring of 2000. This start date is driven in part by the city's schedule for completion of the street project adjacent to the Commercial and Business Park land. The street is estimated to be completed to a point of providing access to these projects by late summer or early fall. The developers have indicated they will plan their projects so that completion does not occur prior to having full access on the road servicing their project. Recommendation Staff recommends the EDA approve the Contract for Private Redevelopment by and between the EDA and developers allowing for staff and the city attorney to make final language modifications and authorizing execution of the Contract.