Agenda - Council - 01/23/2018 - Laserfiche WebLink

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NOW THEREFORE, CAP Acquisitions agrees to the following: SECTION 1 For the following road segments outlined in Appendix A and B, CAP Acquisitions shall design, prepare plans/ specifications, construct, and provide upfront financing. SEGMENT: A-1, C-1, C-2 Bolton & Menk estimated costs: $766,000, $481,000, $190,000 = $1,437,000. Construction of Public Infrastructure shall be completed before a certificate of occupancy for the Proposed Development is issued by the City of Ramsey. SECTION 2 For the following road segments outlined in Appendix A and B, CAP Acquisitions shall pay the City 20% of the total estimated costs. SEGMENT: B Bolton & Menk estimated cost: 290,000 x 20% = $58,000 payment to the City. This payment shall be credited against the future TIF Agreement/ TIF Note outlined in Section 3 below. This shall be a onetime credit. Construction of road segment B will occur at an undetermined time in the future. NOW THEREFORE, the City agrees to the following: SECTION 3 For the following road segments outlined in Appendix A and B, the City will enter into a Tax Increment Financing (TIF) Agreement, and reimburse CAP Acquisitions certain costs to design, prepare plans/ specifications, and construct. SEGMENT: A-1, C-1 (80% reimbursement) Bolton & Menk estimated costs: $766,000, 481,000 x 80% = $977,600 reimbursement SEGMENT: C2 (100% reimbursement) Bolton & Menk estimated costs: $190,000 x 100% = $190,000 reimbursement The TIF Agreement shall be drafted, executed, and recorded before closing on the Purchase Agreement. The TIF Agreement shall include 4.5% interest charges paid to CAP Acquisitions from the City, in addition to principal payments. The TIF Agreement shall allow a 10% administrative fee. The TIF Agreement will be structured as a PAY -GO TIF note. Based on current property tax projections, the TIF Note will be paid back in 8 years. The TIF Agreement will include a minimum assessment provision. Page 2 of 7