Agenda - Council - 06/30/1986 - Laserfiche WebLink

Home

lO Ninutes ~AS~ ~: AI~ARD COHTRAC! FOR II(I'ROVEHEHTS IH IrLIN'~OOD HrI.I.S III ADDITIOB Background: The Council has approved the final plat of Flintwood Hills III Addition; the Developer petitioned for utilities and roads in this plat. Bids were opened for these improvements on June 23, 1986. The low bid was from Wydmer, Inc. in the amount of $414,375.55. This bid includes those improvements that the Council authorized to be completed with tax increment funds. Enclosed for your information is Resolution #86-__ awarding the contract for certain site improvements and utilities and street construction in Flintwood Hills III Addition to Wydmer, Inc. Approval of this contract should be contingent upon the developer entering into a development agreement with the City for the tax increment funds. Included in the developer's agreement for Flintwood Hills III addition is the provision for escrow to secure the timely payment of special assessments. A financial review by an independent auditor (DH&S) indicates that the Flintwood Hills III addition is adequately capitalized by the Non-current assets of the principals in Flintwood Venture Company. The partners have minimal liquid assets but are willing to pledge other resources to secure the payment of special assessments. The absolute minimum escrow required by the City of Ramsey is 20% of the cost of improvements. However, the City Council may require a greater escrow percentage to protect the interests of the City. When the City sells bonds or borrows to develop undeveloped land it shares in the risk taken by the developer. The following table illustrates the proportion of risk shared by each party over the five year assessment period. YEAR I 2 3 4 5 20% Escrow Developer 20% 40% 60% 80% 100% City 80% 60% 40% 20% 0% 30% Escrow Developer 30% 50% 70% 90% 100% City 70% 50% 30% 10% 0% 40% Escrow Developer City 50% Escrow Developer City 40% 60% 80% 100% 100% 60% 40% 20% 0% 0% 50% 70% 90% 100% 100% 50% 30% 10% 0% 0%