Agenda - Economic Development Authority - 02/02/2005 - Special

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Eo The municipal center will be leased to the City under a lease with option to purchase agreement. Financing Plan 1. Project Budget Attached hereto as Exhibit B is a budget which details estimated development costs associated with constructing and equipping the municipal center as currently contemplated. The items of cost and the costs thereof shown in the budget are estimated to be necessary based upon information now available. It is anticipated that the items of cost and the costs thereof shown in each category in the budget may decrease or increase, but that the total project cost will not exceed the amount shown above. 2. Source of Funds and Security The City is entering into the lease with option to purchase agreement with the EDA pursuant to Minnesota Statutes, Section 465.71. The lease with option to purchase agreement is payable from general sources including taxes, and its payment is not limited to a specific fund or specific source of revenues. Sources of funds for any other public improvements include rates and charges, assessments and other available funds of the EDA or City. 3. Bond Issue Details The EDA will issue approximately $19,200,000 in public project revenue bonds to finance the construction of the municipal center. No bonding has currently been structured to finance costs of any public improvements. Development Standards The EDA will consider amOng other things, the following factors when evaluating development proposals for projects within the Redevelopment Area seeking public assistance and support: 1. Degree to which redevelopment objectives are provided for or enhanced. 2. Consistency with this Plan and the City of Ramsey's Comprehensive Plan. Environmental Controls It is presently anticipated that the proposed development in the Redevelopment Area will not present major environmental problems. All municipal actions and public improvements will be 1723662v2