Agenda - Council - 07/09/1985 - Special

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I ~ne DeveloIm~ent Progr~n prc~ides t~o possible Projects to be funded with tax increment finencing~ a mun/cipal community center and the installation of municipal sewer and water along Highway %10 NW. I Staff provided cost estimates for both projects to get a general idea of the total cost of either project. The total cost of a community center (this estimate was based on Eden Prairie's community center I and includes a 65,000 square foot structure) is $5,265,000 (this figure includes engineering costs, administration, etc.). The total cost of installing municil~l water and sewer along Highway ~10 N~ to i the industrial area is $1,610,000 (including engineering fees, administration, bond costs, etc.). I I ! The fiscal consultant ran a conservative cash flow analysis of the proposed Tax Increment Financing District. Based on the develoI~ent of one-third of the parcels in the ~ax Increnent District in the next five years, the cash flow indicates that a bond issue of approximately $1,610,000 can be supported. Based on this information, the bond counsel noted that the municipal community center is not a feasible project at the present time. Please note that projects can also be developed in stages over time as more develop~-nt occurs and a greater increment can be captured by the I Please note that this doc~ent can be amended at any time by Council action; it is important to have the Tax Increment District certified as soon as possible so that the City can capture the i~crement. I ~he Planning and Zoning (k~mission reviewed this document at their June 4, 1985 meeting and adopted a resolution finding it to be I I I I consistent with aamsey's O~ehensive Plan. Also enclosed in (D2-d) for your consideration is the following information: a) De~elol~nt Progr~ b) Public hearing notice c) Resolution finding the Develolm~nt Program to be consistent with the Comprehensive Plan adopted by the Planning and Zoning (kmmission on June 4, 1985 d) Proposed resolution Your action will be to approve/disapprove the establishment of Develol~nent District No. 1 and its Development Program and the establis~m~.nt of Tax Increment Financing District No. 1 and its plan. I A resolution is provided for your approval of this, Unanimous consensus of the Council is needed to dispense with the reading of the ixoposed resolution. The following proposed motion is hereby I s,,~itted for your consideration: Motion by and seconded by to adopt Resolution #85- . approving the establishment"of Development District No. i and the Develolm~nt Program relating thereto and I I establishing Tax Increment Financing District No. 1 and appr~ing the Tax Increment Financing Plan relating thereto. Further discussion: i Motion carried/f-~}ed. Voting yes: Votin~ no: