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<br />Councilmember Elvig questioned if there are sureties with the developer to ensure the City will <br />not be held responsible once they begin purchasing these properties. <br /> <br />Mr. Lasher replied currently the plan anticipates that the developer will deliver a letter of credit <br />to cover the cost of the acquisition of property; the total value will be part of the detailed <br />negotiations. The developer has assured they will deliver a letter of credit should the City move <br />forward, rougWy in the amount of $23 million. <br /> <br />Mayor Gamec asked if the City will be able to draw on the letter of credit as properties are <br />acquired so the City is not paying the money upfront. <br /> <br />Mr. Lasher replied the concept is for the letter of credit to act as letter of guarantee in the City <br />issuing debt. The City will borrow money to assemble the property; if RCM were not to <br />purchase the property the City would exercise the letter of credit to pay itself back. <br /> <br />Councilmember Elvig requested clarifIcation regarding when the tax increment dollars will be <br />received on the improved value in the TIF District. <br /> <br />Mr. Lasher explained if improvements are needed, basically the City would decide whether to <br />wait for the tax increment to come in over a long period of time and make improvements, or to <br />issue a TIF note, make the improvements now, and pay off the note with the future proceeds of <br />the tax increment. The City still has the ability to make that decision. Within the structure of <br />this deal the City is not committed to make any particular improvements to the property that <br />RCM will not pay for. A detailed tax increment plan will be before the Council at some point to <br />decide what projects to use, when they are used, and how to fmance them. Some of the concepts <br />of using them would be for relocation costs; relocating the cell tower; improvements on <br />Armstrong Boulevard, such as the pedestrian crossing or tunnel; as well as spreading 25% of the <br />return in the larger district area. <br /> <br />Mayor Gamec asked if the zoning change to TC-2 has been submitted to the Metropolitan <br />Council for approval. <br /> <br />Community Development Director Trudgeon replied this is not a Comprehensive Plan <br />amendment, which requires approval by the Metropolitan Council. The rezoning will be <br />included in the site plan approval process. ' <br /> <br />Mayor Gamec inquired if the County's contributions for road improvements should be included <br />in Section 11.1. <br /> <br />Mr. Lasher replied the County is not a participant in this document; there would be a second <br />document between the City and the County. <br /> <br />- <br />City Administrator Norman indicated the County is in agreement of their participation with the <br />road improvements. <br /> <br />City Council! December 28, 2006 <br />Page 13 of 26 <br /> <br />P25 <br />