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Home My WebLink AboutJanuary 5, 2001 ~~ ~ 'Z'ed ~ January 5, 2001 TO: MAYOR MADER AND COUNCILMEMBERS SUBJECT: Lakefront Plaza Project Assistance On November 29, 2000, I provided the Council with a packet of materials regarding the proposed Lakefront Plaza project in Downtown Prior Lake. Please bring those materials with you to the January 8, 2001 (5:30pm) workshop. With the help of Mayor Mader and Ehlers Consultant Rusty Fifield, we have devised a conceptual outline for providing assistance to this project. I would like to discuss this proposal with the City Council at the Monday workshop if the circumstances warrant. The developer has asked that we expeditiously provide conceptual approval to his request so that the appropriate documents and procedural steps may be accomplished. 16200 Eagle Creek Ave, S.E" Prior Lake, Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER .. lMIt,.. January 5, 2001 The City will assist this $10 million, 78 residential unit, 12,000 square foot retail project as follows: (1) The City will provide a $1 million payment from cash on hand, The TIF agreement will require that the developer guaranty the tax increments or some equivalent security. (2) Payment will be tendered at closing once the building has been constructed and when a predetermined number of residential units are sold and retail space leased. (3) The payment will be secured by providing the City with first mortgage position or some equivalent instrument. (4) The $1 million principal at 9% interest per annum plus $676,000 in public improvement costs will be reimbursed to the City through tax increment financing payments for up to 25 years. (5) The TIF repayment schedule will be amortized as shown on Rusty Fifield's schedule (i.e. 20 years and total principal and interest payments of $2,583,773), if possible. (6) The City's security for its principal and interest will be released once full reimbursement is received. (7) A homeowner's association would be required to assure on-going building maintenance.