Laserfiche WebLink
EDA Worksession Agenda Memo <br /> November 9, 1998 <br /> Page 2 <br /> • • construction of internal ring road and <br /> sewer and water $ 330,000 <br /> • costs of industrial piece trunk/lateral <br /> Tyler Street, and oversizing $ 869,000 (only approx. <br /> $240,0000 to <br /> be assessed) <br /> TOTAL $2,500,000 (rounded) <br /> The developer of the industrial component of this project will be a <br /> partnership formed between Amcon, Brookstone, Inc., and Associated <br /> Developers. This partnership is proposing that the EDA provide the <br /> following costs up front to the industrial project: <br /> • mass grading and wetland remediation $ 600,000 <br /> • construction of internal ring road and <br /> sewer and water $ 330,000 <br /> • costs of industrial piece trunk/lateral <br /> Tyler Street, and oversizing $ 869,000 (only approx. <br /> $240,000 to <br /> be assessed) <br /> TOTAL $1,799,000 <br /> • <br /> All of the above-mentioned costs, with the exception of the $600,000 for mass <br /> grading, could be rolled into the general obligation bond proposed to be sold <br /> for various improvements relating to the overall eastern expansion. These <br /> costs would then be assessed back to the industrial piece, thereby essentially <br /> guaranteeing repayment and minimizing the city's risk. Those assessments <br /> would then be paid,each year by the new partnership with tax increment <br /> being rebated to the new partnership in an amount equal to the assessment, <br /> if enough increment is being generated to do so. <br /> There is a gap between what is assessable and the actual cost of <br /> improvements. This gap is proposed to be filled through the use of federal <br /> grant dollars on the construction of Tyler Street. <br /> The $700,000 purchase price would be borne by the new partnership up front <br /> with tax increment being used to repay this cost over the term of the district <br /> or as lots are sold in the industrial park. Staff has proposed to the new <br /> partnership that the costs of mass grading the site- $600,000 - be borne by <br /> the new partnership up front, and that tax increment would be used to pay <br /> the new partnership over time as lots in the industrial park were developed. <br /> Negotiation is continuing on whether the city or the partnership will provide <br /> • $600,000 up front to the project to complete mass grading and wetland <br />