Laserfiche WebLink
<br /> <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br />Housing and Redevelopment Authority ~ <br /> <br />Scott Clark, Community Development Director~ <br /> <br />FROM: <br /> <br />DATE: <br /> <br />October 17, 2005 <br /> <br />SUBJECT: <br /> <br />MetroPlains Agreement Revisions <br /> <br />Action for Consideration <br /> <br />The City Council is being asked to consider modifications to the Development Agreement <br />by and between the City of Elk River and Metro Plains Development, LLC. The Housing <br />and Redevelopment Authority will be reviewing this agreement at a special 5:30 p.m. <br />meeting prior to the Council meeting and will be in attendance to give their advisory <br />recommendation. In addition, attached to this memorandum is a generalized concept <br />diagram illustrating the general principles as to how the tax increment streams are being <br />separated and what they are reimbursing relevant to redevelopment costs. <br /> <br />Backaround <br /> <br />Before detailing what changes are being made to the development agreement, it is important <br />to note that the over riding principles of the terms to date are not being amended. All of the <br />following agreement principles remain: <br /> <br />When the projects are built, a "permanent" value will be established that all future tax <br />levies will be measured against, with 95 percent of this pool of increment will be used by <br />the developer to pay specific obligations. All project value that is a result of inflation or <br />appreciation (or put another way, an increase to the "permanent value) will be retained <br />by the City to pay for specific obligations. <br /> <br />The Agreement maintains assurances must be in place that the Bluffs of Elk River will <br />be constructed first and that the Jackson Place would not be able to be constructed <br />without the former mentioned project being in place. <br /> <br />