Agenda - Council - 04/24/2018 - Laserfiche WebLink

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Memo To: Patrick Brama, Economic Development Manager/ Assistant City Administrator rrom: Jason Aarsvold, Ehlers Date: March 23, 2018 Subject: TIF Agreement — CAP Acquisitions, LLC (Affinity Living) CAP Acquisitions, LLC (the "Developer") intends to purchase land by separate agreement from the City of Ramsey for a 174-unit senior rental project. The project requires extension of infrastructure, the cost of which is customarily split between the City and the Developer in the COR area. In this instance, the Developer will pay for and install all the necessary improvements for the project. The City agreed to provide tax increment financing assistance for the Developer to off -set these added project costs. The memorandum summarizes the basic terms of the proposed Tax Increment Financing Agreement by and Between the City of Ramsey, MN and CAP Acquisitions, LLC (the "TIF Agreement"). 1. Project a. The Developer will acquire property from the City per its Purchase Agreement dated September 26, 2017 and install all the necessary infrastructure for construction of a 174-unit senior rental project b. The City will reimburse the developer (with future tax increment) based on a cost sharing formula that is customarily applied in the COR area as follows: i. 80% of the actual cost of the construction of the Public Improvements designated as Segment A-1 and Segment C-1 as described in the City Development Agreement; plus ii. 100% of the actual cost of the construction of the Public Improvements designated in Segment C-2 as described in the City Development Agreement; less iii. $58,000, which is consideration for the Developer's contribution to public infrastructure segment B. This segment will not be constructed as part of this project. 4011 EHLERS LEADERS IN PUBLIC FINANCE www,ehlers-inc.com Minnesota phone 651-697-8500 3060 Centre Pointe Drive Offices a#so in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122 toll free 800-552-1171