Agenda - Council - 05/14/1991 - Laserfiche WebLink

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! I I I I I I I I I I I I I I I I I I To cover the costs of construction, the City agrees to sell Improvement Bonds. The Public Improvement costs will be specially assessed over a five year period. The estimated construction costs and estimated assessments are · Cedar Hills Chestnut Hills Windemere Woods Estimated Total - Public Improvements $571,103 429,615 343,032 $1,343,750 A Letter of Credit or other acceptable form of security will be pledged by each of the Developers as financial guarantee in an amount equal to twenty percent (20%) of the total cost of the Public Improvements to be specially assessed against subject property. The guarantees shall be effective and in force for the term of the assessments - which term is five (5) years. In the event the assessments are not paid in a timely manner, the City could draw on these guarantees. The developers have asked that the City's Financial Advisors analyze the impact to annual assessment costs if they were levied over a ten year term - rather than the five year as specified by the City Code. Staff has advised the developers this would require amending the City Code, and as the Agreements must be signed by June 1, t991, this analysis and discussion of Code amendment could .not reasonably be accomplished prior to June 1. This request will be addressed in the future. The Developer(s) will be responsible at its expense for "Developer Improvements" as follows: Lot grading, in accordance with a grading plan approved by the City Engineer Street grading. Stage II Improvements are defined in the Agreements and the Developer will pay to the City an amount equal to 100% of the City Engineer's estimated construction cost prior to recording the final Plat. Park dedication will be satisfied by conveyance of land and cash payment. It should be noted that final Plats have not yet been submitted for approval. It is anticipated they will be presented to City Council within the next thirty (30) days and that they will be in conformance with the preliminary Plats. The Agreements also contain a "Tax Increment Revenue Note" which basically provides for reimbursement to the Developers for a portion of special assessments to the extent of Available Tax Increment (97% of Tax Increment generated in the proceeding twelve months and remitted to the City by Anoka County). These payments would begin I:ebruary 1, 1994 and each February thereafter to and including February 1, 2000. The City is not obligated to reimburse the Developers from any source other than Available Tax Increment. In other words, if the revenue is not generated, no reimbursement is due. Discussion: Mr. Steve Bubul of Holmes & Graven is here with us this evening. Mr. Bubul has worked with our former City Administrator in establishing TIF District #5 and has also assisted staff during this time of transition. He further has prepared the Agreements under discussion. Mr. Bubul will give an overview of the District and the impact of these developments.