CCP 04-17-1995 - Laserfiche WebLink

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I . , I. CITY OF ARDEN HILLS 1450 WEST HIGHWAY 96 I ARDEN HILLS, MN 55112-5794 I April 6. 1995 I Mr. Tim Nelson I Everest Development L TD 2685 Long Lake Road P.O. Box 130190 I Roseville. MN 55113 Re: Arden Hills Gateway Business District I Dear Tim: I Staff has had an opportunity to review your March 24, 1995 letter which included a detailed allocation of the tax increment to be generated in the Gateway District. You .. have requested that I provide our response in writing. Your letter confirmed an agreement to cap the TIF reimbursement at the point at which I the per square foot net useable land cost is reducted to $0.60sf. Based on the information previously provided by your fIrm, the attainment of a $0.60 sf net useable land cost has an extremely low occurance probability. In fact, your fIgures indicated the attainment 'of I a $0.97 sf net useable land cost had an extremely low occurance probability. I believe that a $0.90 sf net useable land cost provides Everest with an adequate risk I return factor. I also believe the ability to split any additional potential tax increment provides additional fInancial incentive to exceed a "market less risk return" subsidy level. I In summary, Staff would agree with items (a) and (b) of your proposal and propose a counter offer to items (c) and (d) as follows: I (c) Tax increment to be allocated to the developers documented qualifying redevelopment costs to the point that the net useable land cost per square foot is reduced to $0.90. . (d) Any additional potential tax increment would be split equally between the I City and Everest. Everest's share could only be used to further reimburse it for qualified development costs. The City's share could only be for non- .- assessable capital improvement projects within the Tax Increment District. I PHONE: 16121 633-5676 . FAX 16121 633-7839