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<br /> . ... <br /> The request of the developer for assistance with soil corrections is not an unusual request of I <br /> developers. The request to assist in the cost of soil corrections will qualifY as legal expenses .. <br /> under the state guidelines for the use of TIF dollars. However, the City Council should be aware <br /> that the City will be issuing tax exempt bonds for this projects and as such only ten (10) percent <br /> of those proceeds can go for developer improvements (non- tax exempt uses). To date, the Staff <br /> has been reserving this ten percent in the event the City Council decided to purchase the entire I <br /> Indykiewicz parcel. Ifthe City decides to purchase the entire Indykiewicz parcel (versus a <br /> surgical taking), then the acquisition cost of that part of that property which is not required for <br /> the project (ie., can be resold for redevelopment purposes) would not qualifY as a tax exempt use . <br /> of the bond proceeds and would need to be less than ten percent of the total bond proceeds. At <br /> this point in time, the bond would appear to be in the range of $2.6 to $2.7 million dollars. <br /> Therefore, only $260,000 to $270,000 can be used for expenses which do not qualifY as tax I <br /> exempt uses. <br /> If the City Council wishes to retain this ten percent for possible use on the Indykiewicz I <br /> acquisition and accommodate the developer's request, then the City Council should direct Staff <br /> to either develop a "pay-as-you-go" TIF plan for this request or internally finance the soil I <br /> corrections. As the City Council is aware, a "pay-as-you-go" TIF plan (similar to the Cottage <br /> Villa's) would require the developer to incur the costs of the soil correction initially and then <br /> would be paid back from the cash stream ofthe TIF. On the other hand, the City could internally . <br /> finance the costs of these improvements (similar to Darling acquisition and demolition) and then <br /> pay itself back from the cash stream of the TIF. <br /> Recommendation f/J <br /> The Staff recommends that the City decline from providing the developer an additional $250,000 <br /> in TIF for soil corrections, based on the basic concept of the development proposal, that the soils . <br /> do not appear to be significantly different than what was previously provided, and the provision <br /> of the funds could jeopardize other necessary projects within the district. <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> .. <br /> I <br />