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4. EDA BUSINESS <br />4.01: Consider Approving a TIF Agreement between the City of Ramsey and Parkview <br />East LLC (PSD LLC) <br />Economic Dev. Mgr/Assistant City Administrator Brama presented the staff report. <br />Mr. Jason Aarsvold, Ehlers Associates, reviewed the TIF agreement with the Board. <br />Member Riley wondered if in the agreement there were more specifications to materials being <br />used. Mr. Aarsvold stated there was not. He noted this will be a judgement call for the EDA to <br />decide if they meet the task outlined in the agreement. He stated sometimes the developer wants <br />more certainty around that so that discretion does not exist. <br />Economic Dev. Mgr/Assistant City Administrator Brama stated the developer has read the <br />agreement and is comfortable with what they have now. He thought there was a level of trust <br />between the two parties at this time but there is a level of discretion there and they could make it <br />more specific if needed. <br />Mr. Aarsvold reviewed the schedule with the Board. He noted June 30, 2017, is the end date <br />listed in the construction schedule. There is a section in the agreement outlining how the TIF <br />will be delivered and it is going to be done on a basis similar to the Life Fitness agreement. It is <br />a $500,000 pay as you go assistance, a note, which means they will be paid from the tax <br />increment generated from this parcel to pay down that note. The way this is set up is that they <br />will only get 85% of the TIF. It was determined that this will be limited to four years of <br />assistance. Mr. Aarsvold reviewed the payments, building value and fees with the Board. <br />Member Hardin asked if an appraisal has been done and how they came up with the value. <br />Mr. Aarsvold stated they do not do an appraisal because without a project built and functioning it <br />is difficult to do an actual appraisal so they have conversations with the assessor. <br />Member Hardin asked on number 4D if they have that information. <br />Economic Dev. Mgr/Assistant City Administrator Brama stated they do and as part of their due <br />diligence in taking in this application they have received statements from their banks and have <br />written equity. <br />Member Riley asked if this agreement has already been negotiated and discussed with them. <br />Economic Dev. Mgr/Assistant City Administrator Brama stated it has and the timeline has been <br />moving very quickly and any discrepancies or additions will be brought to the City Council. <br />Member Riley asked on 3D, the developer will not seek reduction in market value; he understood <br />that was very important in a TIF project because they are relying on that but does that mean <br />"ever". <br />Economic Development Authority/October 8, 2015 <br />Page 2 of 8 <br />