Agenda - Council - 09/14/1993 - Laserfiche WebLink

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'! I I I I I I I I I I I I ,I I I I I I TAX INCREMENT REVENUE NOTES FOR WOOD POND PROJECTS By: Ryan Schroeder, City Administrator Background: On May 31, 1991, the City entered into agreements for the development of Cedar Hills and Chestnut Hills Subdivisions. On October 31, 1991, the Windemere Woods Development Agreement was signed. The above three subdivisions were housing tax increment GIF) projects in that there were extraordinary trunk sewer charges. The three developers are obligated for these "SPECIAL Trunk" charges through assessments which the Council has previously levied. The special wunk assessments are as follows: Chestnut Hill $ 205,300 Cedar Hill 23.4,042 Windemere Woods 106.756 Total assessed $ 546,098 Recommendation: Contemplated in the development agreements is that the City will reimburse each developer for principal and interest (8%) up to the lessor of the above costs or 97% of available tax increment. The vehicle used within the agreements is a tax increment revenue note for each subdivision. Thus, enclosed are Revenue Notes Series 1993 A, B, and C which passage of completes the transact/on (but for actual payment). Upon delivery of the Revenue notes, scheduled for December 1, the notes begin accruing interest. The City will begin receiving tax increment from the projects in 1994 for a February 1995 initial payment. The last payment will be in the year 2000. If increment is not sufficient to pay off each note, the note is retired anyway. Any excess increment is rem/ned by the City. Each developer receives only the increment generated by his subdivision. Hence, it is likely that the Windemere Woods note will have better experience than that of ~ I"Iil.!s due to quicker buildout. Council should be aware that the legal work for these subdivisions continues to be Holmes and Graven. Council Action: Motion to adopt Resolution g93-09- Value Homes, Inc. issuing its $205,300 TIF Revenue note 1993 A to Good Motion to adopt Resolution g93-09- Astleford Company. issuing its $234,042 TIF Revenue note 1993 B to M.C. Motion to adopt Resolution g93-09- Windemere Woods of Ramsey. Reviewed by: issuing its $106,756 TIF Revenue note 1993 C to Copies also distributed to: City Administrator CC: 09/14/93