Agenda - Council - 09/24/1985 - Laserfiche WebLink

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PF.,R'I~ilNS TO D-2, ~NCIL ~ BUSINF.,SS ~IN~ TAX September 24, 1985 Mayor and City Council RE: Request frc~ M & S Develol~ent for financial assistance On September 20, the City Planner and Finance Officer met with Wayne Burggraaff and Karen Wermager-Schultz of Evensen-Dodge, Inc. to discuss M & S Develo~ent's request for financial assistance for site improvements. Wayne and Karen reviewed M & S Develo~ent's request and stated that based on the cash flow projections, the request was financially feasible. Wayne outlined several options the City had for financing M & S DeveloI~ent request: 1. Issue bonds to pay for site improvements; Borrow funds frc~ another City fund to reimburse the developer for site improv~ents and repay the City fund at the time bonds are sold; or Enter into an agreement with the developer stating that the developer will be reimbursed for the site improvements upon certain criteria being fulfilled by both the developer and the City. Wayne stated that he didn't feel that either Option 1 or Option 2 were very feasible at this time. ~e a~ount of the site improv~ents is not large enough to warrant the costs involved in issuing bonds as outlined in Option 1. At this time, Wayne also advised against borrowing money fra~ another City fund as suggested in Option 2. Wayne stated that, in his opinion, the City should consider entering into a developer's agreement with M & S Development which will provide that the developer will be reimbursed for the site improvements provided that the following qualifications are met: 1. Certification from the developer that the work is completed to the City' s specifications; 2. Reimbursement shall not exceed a certain amount as determined by the City Engineer; ~e City shall not be responsible for the maintenance or repair of any of the work - this shall be the sole responsibility of the developer; and The City shall reimburse the developer for the costs of the site improvements by a certain date in 1986; this date shall be either when the City has sold bonds and received the proceeds or when the City receives increment sufficient to reimburse the developer for site improv~ent costs, whichever is earlier. Council Action: Based on Evensen-Dodge's recommendation, your action will be to direct City staff to prepare a develo~ent agreement with M & S Develo~ent to ensure the reimbursement of certain site improvement costs to the developer provided certain qualifications are met.