Agenda - Economic Development Authority - 05/08/2014

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(10) Sunfish Express Staff and Council recently received notification from Sunfish Express (Shell gas station, Cousin Subs, and Taco - Pulco) that the business will be closing its doors. Sunfish Express stated a large factor in their decision to close was access to the property after the medians on Sunfish Lake Blvd. were installed. On January 28t Ramsey HRA discussed the topic as an update item on the agenda. HRA Members expressed concern with the closing of the business. It was generally agreed upon that this topic be added to an HRA /EDA meeting in the future. Staff will contact the real estate agency charged with marketing that node to discuss opportunities and challenges. Upon receiving their feedback Staff is recommending the EDA discuss the "node" more formally. No action to date. (11) Residence at The COR Staff is working to gather information to provide a holistic update to the EDA and Council. (12) Restaurant Subsidy Policy Staff is working to gather information related to the Restaurant Subsidy Policy to provide a thorough update to the EDA. At it's 4/10 meeting the EDA requested the policy be brought back for review /discussion in light of the recent closing of Falls Cafe. (13) TIF 14 Please see the below update from Finance Director, Diana Lund. If any questions arise, please contact Diana directly. A brief summary of the two notes that the city has outstanding with F &C: Note #1: A Promissory note in the amount of $1.3M (city used existing TIF funds to front) -- Terms call for F &C to pay to the city beginning April 1, 2015 20% of its Net Cash Flow as defined in the development agreement and with a statement from a certified public accountant attesting to Net Cash Flow. This payment is every April from year 2015 until 2025. Note #2: A Promissory note in the amount of $6,825,000 (City issued a $7,320,000 TIF bond in 2012). The bond is higher than the note due to three years of capitalized interest that will be covered by the interest that F &C has to pay the city. Of the $6,825,000, F &C has paid down the principal in the amount of $374,552.76 when they made a $500,000 prepayment on November 1, 2012. The current terms of the note call for the following: The interest rate charged on the outstanding principal increased from 6.27% to 8.27% after 18 months or January 12, 2014 as F &C did not provide to the city $3,000,000 in prepayments by this date. If at any time F &C makes prepayments up to the $3M, the interest rate will go back to the 6.27 %. The entire outstanding principal amount of $6,450,447.24 is required to be paid by either the earlier of the sale of the property or by June 1, 2015.