Agenda - Economic Development Authority - 09/03/2015

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Economic Development Authority (EDA) Meeting Date: 09/03/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 1. Title: Consider Multiple Actions Related to a Potential Life Fitness Expansion Project Purpose/Background: PURPOSE: (1) TIF PLAN: Consider Support of Resolution to Modify Development District 1, Establish TIF District 15, and adopt TIF District 15 Plan. This step does not award TIF. This step allows the City to award TIF. Attached to this case is a TIF Plan Summary; and Staff recommends the EDA concentrate their time on this document. --and-- (2) TIF AGREEMENT: Consider support of the attached Development Agreement (a.k.a. TIF Agreement). This would be considered the actual proposed TIF award to Life Fitness. Attached to this case is a TIF Agreement Term Sheet; and Staff recommends the EDA concentrate their time on this document. BACKGROUND (Project) This case was introduced to the EDA in July; at which time, detailed background information was provided on this project. Detailed background information on TIF was also included is said case. Attached is the July EDA MEMO. BACKGROUND (TIF Plan) Ehler's is managing the process to establish a new TIF district. Attached is an overview/ summary of the proposed district. Also attached is a resolution the City Council will consider on 09/22. Lastly, attached to this case is the TIF Plan. Again, the purpose of the TIF Plan is to allow the City to award TIF. It should be noted, the attached TIF Pan includes a "maximum budget." This is a high and conservative total eligible project costs estimation ($1,468,320). This number is different than what is included in the attached TIF Agreement; which is the actual proposed assistance ($224,000). To be clear, the City is not proposing to award $1,468,320 to Life Fitness. The City is proposing to award $224,000 in present value (PV) terms. BACKGROUND (TIF Agreement) This agreement lays out the terms and conditions for the proposed TIF award; including the specific amount of TIF to be awarded. Present Value = $224,000 @ 5% interest over 15 years. Future Value = about $352,000. This agreement was drafted by Ehlers, via Briggs and Morgan. This agreement is currently being reviewed by Staff, the City Attorney, the City's economic development consultant Mike Mulrooney, and Life Fitness. Changes to this draft document are likely to occur by the time it reaches the City Council on 09/22. Attached to this case is a summary of the TIF Agreement (term sheet). Notification: