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Chairperson Steffen asked for more details on the Ehlers recommendation for a lookback <br />provision. <br /> <br />Economic Development Manager Sullivan stated that the lookback provision would be moot as <br />the City is providing the land through up-front financing. The city would be reimbursed through <br />tax increment generated by the project. He explained that the City will review the sworn <br />construction statement and costs to ensure they are in line with previous estimates in lieu of that <br />lookback provision. He stated that staff does not recommend a formal lookback provision. <br /> <br />Member Cords asked what the cost to the City is for this deal. <br /> <br />Economic Development Director Sullivan replied that the cost to the City would be staff time, as <br />with any deal. He explained any other costs associated, including the cost for consultant work, <br />would be TIF eligible expenses that would be reimbursed through the TIF district and revenue <br />generated by the project. He explained that the City has received $5,000 from the developer to <br />assist with the upfront cost. <br /> <br />Member Cords asked the percentage of the property tax that the City would receive annually. <br /> <br />Economic Development Director Sullivan replied that generally the City would receive 25 to 33 <br />percent of the taxes. He explained that the City receives a higher portion of that during the TIF <br />payback period, estimating about half of the property taxes coming back to the City during that <br />time. <br /> <br />Member Cords stated that he was simply curious on the details of the seven to nine-year payback <br />time. <br /> <br />Member Hardin asked if TIF District 14 is within Development District No. 1. <br /> <br />Economic Development Director Sullivan provided additional details on development district 1 <br />and TIF district 14, which covers the majority of The COR and affirmed that TIF 14 was inside <br />Development District No. 1. <br /> <br />Member Hardin asked if the City would have adequate financial guarantees to ensure the project <br />is completed. <br /> <br />Economic Development Director Sullivan stated that the City’s transaction is the land deal and <br />the City would receive the assistance back through the financing. He stated that a Right-of-Re- <br />entry agreement would ensure that the City would receive the land back if the project does not <br />move forward. <br /> <br />Deputy City Administrator Gladhill provided details on the development agreement that would <br />be done as part of the Site Plan process and that a letter of credit that would be required for some <br />of the improvements. <br /> <br />Member Hardin asked if there are any letters of intent related to the restaurant at this time. <br />Economic Development Authority/ April 7, 2020 <br />Page 3 of 9 <br /> <br />