3. HRSR 10-17-2008 - Laserfiche WebLink

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