8.0. EDSR 02-13-1995 - Laserfiche WebLink

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assessments. As future lots in the business park are sold, the developer Aft would be obligated to pay off the lots remaining assessments and repay the City/EDA on a per acre basis that is reflective of the public assistance attributable to that site. A nominal interest charge could also be attached to the City's share. City funds would not be used to help underwrite the assessments attributable to the lots that may end up with a commercial or a limited retail use. That is why those estimated costs were deducted from the Country Ridge estimate, above. Summary- Putting it all Together Assuming the $430,000 in RDF TIF funds are available in the business park, those funds can be pro-rated to the respective land developers so as to underwrite their level of assessments: 71% of$430,000 = $305,300 29% of$430,000 = $124,700 TOTAL = $430,000 Deducting the level of assessments attributable to commercial/limited retail uses, the pro-rated breakdown is a follows: . 56% of$430,000 = $240,800 44% of$430,000 = $189,200 TOTAL = $430,000 Recognizing that a good portion of the costs attributable to Gagne Development may be paid for through MnDOT funds, perhaps the pro-rated share to Gagne has been overstated. Utilizing round numbers, let's assume that $300,000 is available to Country Ridge, This equates to the City/EDA underwriting, say, 65% of Country Ridge's infrastructure costs ($300,000 $456,797 = 65%). Stated,another way, for every dollar of infrastructure costs attributable to Country Ridge, the City/EDA would underwrite by two-thirds. As lots are sold, these funds are recovered, with a nominal interest charge, on a per acre basis. As security for repayment, it is also suggested that a mortgage, promissory note,and developer's agreement be executed and filed. Action Requested The EDA is asked to: 1. Forego the opportunity to acquire the property as outlined in the January 9, 1995, letter from Jay Johnson. •