EDSR MEMORANDUM 03-09-1998 - Laserfiche WebLink

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EDA Agenda Memo March 4, 1998 Page 2 Agreement are of most significance to the developer. There is one key issue however, which the EDA is aware of as it enters into this Development Agreement: • The EDA is agreeing to provide a maximum $160,000 of tax increment to the developer to pay qualified project costs for site improvements to the property. The developer is agreeing to the following significant issues within the Development Agreement: • Developer agrees it will pay for all the costs up front and show evidence of having paid such costs to the EDA prior to any reimbursement of tax increment. • Developer agrees that if costs of qualified site improvements are less than $160,000, the amount of tax increment assistance will be adjusted accordingly. • Developer agrees that it will enter into a Job Performance Agreement indicating the number of jobs which will be created as a result of this project within the next two years. • Developer agrees that it will lease space in the project in a • manner which qualifies under the tax increment state statutes which generally limits the amount of retail space to 15 percent of the overall project on a square footage basis. (I-1 zoning also will limit or exclude such uses.) • Developer agrees thatit will construct the project and make the necessary site improvements in a manner as approved through the city planning process and that if such plans change the EDA has the ability to agree to such changes or deny the provision of any tax increment assistance to the project. • Developer agrees that it will be able to receive no more tax increment than the project generates in a given year minus a 10 percent administration fee. • Developer agrees that the Note, as attached to the Development Agreement, upon execution by the EDA at completion of the project, does not obligate either the city or the EDA to provide any tax increment subsidy over and above what is generated in a given year minus 10 percent administration fees and in no case will such assistance be more than $160,000.