Minutes - Council - 01/23/2007 - Laserfiche WebLink

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paper this past week. He wants to be sure they are careful in how this is being perceived. According to the article in the paper it appears that $30 million of public money is going into this project. However, in actuality the project is $33 million total, and of that, $26 million is actually cash from the developer upfront for land acquisition and for special extensions of road service that will be on CR 116 and improvements on Sunwood Drive. He does not agree with the statement in the article the way it is written that the City is putting a 10t of public dollars into this. The other point is that $4 million of this is through county and state participation. None of this is being paid for by Ramsey tax dollars; it is being paid primarily from the developer in the TIF District where the City is helping him repay himself over time. None of it is on the tax burden of the City. Furthermore, the income estimate on this property as of this year was $23,000. This district creates $632,000 in revenue just for the City of Ramsey at the end of the TIF district, combined with the other half they are looking at about $1.2 million of revenue, which is 8% of the total budget the City would receive in tax dollars from this one project of Ramsey Crossings. Economic Development Coordinator Sullivan indicated Councilmember Elvig is correct in that there are no general fund dollars dedicated to this project. All revenue from this project will be from tax increment revenue or developer money or bonding backed by a letter of credit from the developer. Councilmember Look asked if the City currently has control of this property or a letter of credit from Robert Muir Company (RCM). He stated it seems as though RCM is waiting for things to line up before they issue a letter of credit, which will back up the TIF in terms of acquiring property and things of that nature. Mr. Jim Lasher, LSA Design, stated at this point there are continued negotiations with RCM. RCM has been negotiating with Target and is meeting tomorrow with a national home improvement retailer, which are the two primary tenants of this property. The current schedule is that RCM will complete negotiations with those parties and deliver to the City a preliminary plat about the third or fourth week of February. The schedule has that plat being approved on or about April 1, 2007. Once the preliminary plat is approved, RCM will submit a letter of credit to the City. The City will then use that letter of credit as security and issue that to assemble the property. Councilmember Look questioned if there is an opportunity for this to fall out from a negotiation standpoint with RCM and the proposed companies. Mr. Lasher replied yes, there is always that opportunity. RCM has given the City assurances that the negotiations are moving forward well, but it cannot be guaranteed. Councilmember Look stated his concern is that until this property is controlled, he does not want to put the cart in front of the horse. If this project is to go ahead it needs TIF, and he voted in favor with the HRA in terms of approving money to purchase the property. What he is concerned with is going ahead as if this deal is done when it is not done, and where that leaves the City with what they have initiated if it doesn't come through. City Council / January 23, 2007 Page 10 of 28