Agenda - Council - 09/24/1996 - Laserfiche WebLink

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I I I I I I I I I I I I I CASE AIV[ENDMENT TO THE ANOKA ELECTRIC COOPERATIVE DEVELOPMENT AGREEMENT j S~ameBy: Ryan R. Schroeder, City Administrator Gromberg, Economic Development Coordinator Background: With the recent approval of the Vision-Ease Lens (VEL) facility and the subsequent groundbreaking on September 17, 1996, the City should at this time review the development! agreement with Anoka Electric Cooperative (AEC) to provide for the continued de~,elopment of the AEC Energy Park. During the approval process of the VEL facility, they ~equested that AEC dedicate various access and drainage easements for usage by their new facility. AEC, after discussions with the City, determined that the best course of action wofild be to dedicate the outlots and easement areas to the City of Ramsey. The two outlots, ~ and D of AEC Energy Park, were created originally for possible use as future roadways and utility easements. At this time AEC will be dedicating both to the City for future usa. The City would not be required to construct any additional roadway or other infrastrttcture improvements to serve the park. The City wiU also allow for the consideration of the approximate two-acre drainage easement in _~e southeast comer of Lot 1, Block 4, AEC Energy Park Addition, to be considered as! a part of the lot when determining density coverage issues. This formula would be consistent with the City's current policy of allowing storm water retention ponds to be consideled when determining lot coverage. The difference in this case would be that the retention ~ea would be dedicated to the City as a more regional ponding area to serve the entire indtistrial park area. In addition to :this issue, the VEL development agreement allows for the reimbursement of AEC for the Cost of 18.1 acres used by VEL. This reimbursement will be from the net increment thae will be generated by the new facility and allows for both the City and AEC to be made whol~ by the end of the TIF district's life span. The proposed amendment to the development~greement at this time allows for the City to lock in on the reimbursement cost for future pro~ects at $0.65 per square foot of the property as it is developed. These payments willibe made only after the City receives the newly generated increment and only as the increm4nt received allows for the reimbursement. This reimbursement would be evaluated after the fifth year (2003) of the district to determine the level of the reimbursemeni that would be available due to the pending retirement (2006) of the TIF district. ~ Council Action: I I I I I Motion to approve the proposed amendment to the development agreement with AEC for the development of the AEC Energy Park. Reviewed bY: City Administrator Economic Dev~elopment Coordinator CC: 09/24/96