EDSR MEMORANDUM 02-02-1998 - Laserfiche WebLink

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EDA Worksession February 2, 1998 Page 3 addressed these and other issues regarding their new facility on pages i9 & 10 of the Development Agreement which outlines the issue and the date of completion of that activity/issue. These issues/activities as listed will be required to be completed to the satisfaction of the city prior to releasing any of the requested $300,000 tax increment assistance, of which the first payment would be made to the Morrells in approximately July/August 2000. It is appropriate to require the completion of these activities prior to providing any tax increment dollars for the project. The major issues are with regard to the timing of demolition of the buildings (not mini storage) and environmental clean up of the current site. The Morrells have indicated these activities would occur, and will propose a timeframe within which to accomplish these activities. Staff has indicated an outside date for accomplishing these activities would be approximately December 1999. Another issue which was brought up by a Councilmember is that the we should require the Morrells to discontinue the other businesses which are being operated on the current site. The Morrells have indicated they would like to allow the wood sales to continue until the site is sold. The issue of zoning and replatting the current site is not proposed to di be tied into this Development Agreement. Staff feels that is an issue which has its own process and can be pursued by the Morrells at a later time. The Morrells would like to have a discussion with the EDA specifically Councilmembers represented on the EDA, regarding their approach to this issue. Also, the issue of zoning and replatting the current site could not be tied into this Development Agreement because this Agreement works in conjunction with approval of the Tax Increment Plan and would have to be approved at the same time as the Plan April 6, 1998. Staff does not see the zoning and replatting issue being resolved sufficiently to be able to proceed with the current tax increment/development agreement time schedule. Attached to the Development Agreement is a "Tax Increment Revenue Note." This Note is to be,executed upon completion of construction of the Morrell facility and will indicate the amount of tax increment dollars which have been approved to facilitate the project. In this case a draft of such Note is attached to the Development Agreement and indicates the provision of$300,000 plus interest. Attachment • • Morrell Development Agreement