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,~ASE # ~ CONSIDER SETTLEMENT WITH ANOKA RAMSEY SPORT CENTER By: Jessie Lo Hart, Finance Officer Background: Mr. John Noard of Anoka Ramsey Sport Center has contended for the last several years that his property is improperly being charged for water and sewer trunk related charges in relation to City Project #87-19. He feels that these charges should have been covered under "site improvements" in the tax increment Project #88-15 that assisted him during the first expansion of his facilities. After extensive review of our files and the plans at HAAI, we are satisfied that the City contribution toward site improvements covered only the cost of installing the storm sewer from catch basin to street. There was no indication in our correspondence files, contract documents and technical specifications, or plans that there was ever an intent that the tax increment district would pay for the installation [i.e.: trunk and lateral charges] for water and sanitary sewer. In 1994, the City again provided tax increment assistance to Mr. Noard for an expansion of his facility. During these negotiations, and included in the Development Permit with Mr. Noard, the issue was proactively dealt with. The development permit includes the following: Further, pursuant to the attached memorandum dated July 18, 1994, from Jessie Hart, Finance Officer, it is recognized that trunk and lateral charges for the first phase of this development, including principal and accrued interest are Nineteen Thousand Five Hundred Seventy Four Dollars and Eighty Three Cents ($19,574.83). Said charges being infrastructure in nature are deemed eligible expenditures from tax increment funds. Therefore, as increment becomes available above the annual site property tax payment of Twenty Nine Thousand Dollars and no cents ($29, 000. 00), the City agrees to reimburse the Permitee up to 50% of available increment per year in a total not to exceed the lesser of Nineteen Thousand Five Hundred Seventy Four Dollars and Eighty Three Cents ($19,574.83) or the amount certified by the City as paid by the Permitee toward this item at any point in time and in total. Notwithstanding the above, the Permitee reserves the right to contest the payment requirement of City Improvement Project #88-15 as said project applies to Permitee. It is the Permitee's contention that the sewer and water charges referenced ($19, 574. 83) shouM be paid with tax increment proceeds from Project #88-15. Staff still stands by the premise that Mr. Noard ofAnoka Ramsey Sport Center was appropriately charged water and sewer trunk and lateral benefit charges in conjunction with the initial expansion of the facility. In addition, the City has also provided a unique benefit to Mr. Noard through the most recent expansion and facility agreement (referenced above), in that he may receive up to Nineteen Thousand Five Hundred Seventy Four Dollars and Eighty Three Cents ($19,574.83) in property tax rebates, something other developers and property owners have not been afforded. Further, currently, there is no excess increment available from Project #88-15. Any monetary settlement with Mr. Noard at this time would have to come from other funds.