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Dennis Sharp and Don Oreenberg, partners in Ramsey Investments, were present. <br /> <br />Mr. Sharp presented the City Council with a copy of the lease between Parabody and <br />Ramsey Investments. Mr. Hartley read the 'contingency' portion of the lease and purchase <br />option. In summary, the contingency section reflected that if there is tax increment <br />participation in the project, Parabody will enter into a lease/purchase option. <br /> <br />Mr. Hartley stated that every ciD, is being scrutinized and after the fn-st of the year there will <br />be substantial penalties for approving projects that cannot meet the 'but for' test. Because <br />of that, City Council has to be convinced by the applicant that the development would not <br />happen without the assistance of Tax Increment Financing. <br /> <br />Mr. Sharp stated that the proposed development is not a case of hardship but rather a case <br />of economics; the president of Parabody scrutinized the proposals for the facility <br />thoroughly and selected that which was submitted by Ramsey Investments, indicating that <br />it was the best proposal because it included industrial revenue bonds and tax increment <br />financing participation. <br /> <br />Mr. Hartley noted that another conclusion might be that the development would not happen <br />to the level of standards proposed if not for mx increment financing participation. <br /> <br />Mr. Greenberg also noted that according to Mr. Raatikka, if this development is approved <br />for tax increment financing the extension of sewer will be reconfigured to service a greater <br />area than originally planned; on that basis, the development is raising the quality of <br />development in the area. <br /> <br />Council was of the consensus that the quality of development will be enhanced with tax <br />increment financing participation. <br /> <br />Motion by Councilmember DeLuca and seconded by Councilmember Peterson to direct <br />City Staff to prepare an amendment to the Tax Increment District No. 2 Development Plan. <br /> <br />Motion carried. Voting Yes: Mayor Reimann, Councilmembers DeLuca, Pearson and <br />Peterson. Voting No: None. Absent: Councilmember Cich. <br /> <br />Mr. Sharp stated that he received a call from Dave Kennedy at Holmes and Graven <br />indicating that they City had hired them as his bond counsel. <br /> <br />Mr. Hartley stated that the indusmial revenue bonds are being issued in the name of the City.. <br />of Ramsey; it is not the policy to have other than the City's bond counsel advising the City <br />Council; Dave Kennedy is the City's bond counsel. Mr. Hartley stated that Holmes and <br />Graven will ~ve credit for the preparatory work that has already been accomplished by Mr. <br />Sharp's bond counsel. <br /> <br />Mr. Sharp indicated that the City of Ramsey sanctions the bonds and doesn't guarantee <br />them; Mr. Sharp requested that his bond counsel be approved to complete the preparation <br />of the bond issue with final review by the City Attorney; further, that the bond counsel of <br />record on the bonds be the £n-rn of his choice. <br /> <br />City Council/May 22, 1990 <br />Page 26 of 27 <br /> <br /> <br />