02-08-1999 EDA MIN - SPECIAL - Laserfiche WebLink

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Special Worksession of the Economic Development Authority Minutes February 8, 1999 Page 2 . Andy stated that the one concern with the plans for the street and storm sewer portion of the project is that all of the right-of-ways necessary for the street construction must be within the city's control prior to the project being approved by Mn/DOT for letting. It is anticipated that the rights-of-way will not be obtained until August 1999, and that construction will not begin until after October 1, 1999 (60-days from the time the right-of-ways are obtained until the project is let). With this, the bulk of the Tyler street construction would be undertaken in 2000 with completion of the project in the late summer/early fall of 2000. Andy stated that the tentative schedule may change if the right-of-ways were obtained without using the eminent domain process. He indicated that this would allow for additional construction to be undertaken in 1999; however, under the best scenario, much of the street construction would carry over until 2000. Condemnation Proceedinas - Mevissen/Warden City Attorney Peter Beck indicated that the order of proceedings would be deliver of appraisals with a formal offer to purchase and the filing of petition for eminent domain. He stated that it is possible that properties could be acquired 90-100 days after the filing of the petition process. e Commissioner Bender stated that it was his understanding from a previous EDA meeting that the appraisals were to come back to the EDA for review prior to serving. Director of Economic Development Paul Steinman indicated that staff will provide the EDA with the appraisals, if completed, at the March 8, 1999, regular meeting. Tony Gleekel, Associated Developers Counsel, expressed that he was in agreement with negotiations to begin following the formal offer and serving of petitions (anticipated for the third week of March). He further stated that there are several issues prevailing at this time, such as the request for preliminary plat review scheduled for the 2/22/99 City Council meeting, the impact that the timing of Tyler street may have on the project, site development, bids for lateral utilities on the Hohlen property, and the anticipated quit claim in April for the Ebner property. Commercial/Industrial Construction e Paul Steinman stated that completion of the first industrial building triggers the EDA's payment to the developer of $300,000 up front as part of their approximately $2.9 million incentive package. Paul indicated that staff is currently discussing with the developer that completion of the first industrial building would also trigger the start of interest on the pay-as-you-go note in the amount of approximately $2.6 million. He further stated that the ideal situation, from a cash flow perspective, would be for the commercial component to be constructed one year prior to completion of the first industrial building. Therefore, the EDA would save potentially one year of interest on the pay-as-you-go note and also delay the provision of the $300,000.