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EDA Worksession <br /> February 2, 1998 <br /> Pace 2 <br /> basis. The Morrells have,in turn, requested that an interest rate be <br /> gip applied to the $300,000. This is allowed by State Statute. Staff has <br /> calculated an interest rate of 6 percent in its pro formas on this project. <br /> Total dollars provided to Morrells over time with the 6 percent rate <br /> will be approximately,$400,000. If the rate were 8.5 percent the total <br /> dollars of assistance provided would be approximately $440,000. <br /> • Will there be tax increment dollars available for other public <br /> improvements? <br /> If an 8.5 percent rate is applied, this TIF district will generate <br /> approximately$65,000-$70,000 in the years 2007 and 2008 (The <br /> Morrells request that they receive their assistance first - in this case <br /> they will be paid in years 2000-2006). The increment received in 2007- <br /> 2008 will be eligible to be spent for payment of the city's share of the <br /> construction of the signalization of Highway 10/17 Pt Avenue and <br /> potentially for construction of a controlled railroad crossing on 1718t <br /> Avenue. A pay-as-you-go rate of 6 percent will allow one additional <br /> year of increment, (an additional$70,000) to be available for these <br /> public improvements. <br /> Staff suggests if the pay-as-you-go interest rate is negotiated to be <br /> di higher than 6 percent, the city and Morrells share proportionately <br /> each year of increment received. In this case the Morrells will receive <br /> their assistance over the entire life of the District (2000-2008) and the <br /> city also will have an income stream from the District for the same <br /> years which can be used to pay the cost of the planned public <br /> improvements. In this scenario the Morrells would receive <br /> approximately $45,000 per year and the city would receive$20,000 per <br /> year from the year 2000 to 2008. <br /> Attachments <br /> • Draft TIF Plan for TIF District No. 18 and TIF District Boundary <br /> Map <br /> • Schedule for Establishment of TIF District No. 18 <br /> 3.2. Review/Discuss Development Agreement Issues <br /> Staff received direction from the EDA to pursue putting together a <br /> Development Agreement to address issues regarding the condition of <br /> the Morrell site at the corner of Jackson Avenue and School Street <br /> upon the businesses relocation to their new facility. Staff has <br />