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EDSR MEMORANDUM 03-19-1998
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03-19-1998 WORKSESSION
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EDSR MEMORANDUM 03-19-1998
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EDSR
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3/19/1998
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verification of the qualifications for this redevelopment tax <br /> . increment district? <br /> 0 Legal questions regarding interpretation of the tax <br /> increment statute in order to define the boundaries of <br /> the district <br /> 0 Financial analysis of the developer's requested <br /> assistance <br /> 0 Building department to complete an inspection of the <br /> site to identify how the district can qualify as a <br /> redevelopment TIF District <br /> • Should staff proceed to discuss the following options <br /> regarding the business park component of the project? <br /> 0 Discuss a private (Amcon)/private (Matt Fischer) <br /> partnership. <br /> 0 Discuss a public/private partnership with Amcon or <br /> another industrial developer. <br /> 0 Discuss 100% city ownership of the 40 acre business <br /> park. <br /> 4. Analysis of TIF Request-Dave MacGillivray, Springsted, Inc. <br /> David MacGillivray of Springsted, Inc., the city's financial advisor, will <br /> provide at this meeting an analysis of the developer's tax increment <br /> request as proposed. The purpose of this analysis is to help provide an <br /> understanding of the mechanics of this redevelopment district, pay-as- <br /> you-go tax increment financing, and issues of the city and developer <br /> sharing a tax increment revenue stream to pay various project costs. <br /> There are several key assumptions/issues to keep in mind as we <br /> proceed with this analysis: <br /> • This initial TIF application and Springsted analysis does not <br /> include any costs or revenues regarding the industrial <br /> component of the project. <br /> • Staff has not completed any due diligence with regard to the <br /> developer's requested TIF subsidy. <br /> • The city identifies project costs in the amount of <br /> approximately$3.5 million attributable to extension of <br /> utilities to the site, lift station, road improvements, and other <br /> various public improvements related to the overall extension <br /> of utilities to service this site and the eastern area. It has <br /> not yet been determined how much of these costs are to be <br /> borne by the developer versus city costs. It is appropriate <br /> • that a portion of the tax increment revenue stream be shared <br />
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