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<br />I 0T~ <br /> ~.~ <br /> Y;/\'tI'1( <br />I. ~,U)~ <br /> CITY OF ARDEN HILLS F..r- <br />.. ~. r- <br /> AUGUST 18, 1997 - WORKSESSION r. i.'~d <br /> DISCUSSION OF DEVELOPMENT AGREEMENT ., ,...- <br /> - GENERAL PRINCIPLES - <br />I * City and Developer (Welsh Development LLC) agree on scope and details of project <br /> * City issues bonds (General Obligation TIF) to pay for public improvement (relocated <br />I 14th Street and relocated Round Lake Road/Highway 96 intersection) costs within the <br /> Gateway Business District (GBD) <br /> * Increased tax revenues (TIF) from the Phase I, 11, III, and IV GBD projects pay the debt <br />I service on the bonds <br /> Welsh Development, LLC (Welsh) is responsible for: <br />I 1. Building a Phase 11 building of at least 104,532 square feet (max.); <br /> 2. Building a Phase III building of at least 70,000 square feet (115,575 square feet max.); <br /> 3. Building a Phase IV building of at least 70,000 square feet (111,779 square feet max.); <br />I 4. Constructing, and receiving occupancy permits, for at least 244,532 square feet of <br /> buildings by , <br />I. 5. Provision of buildings with sufficient value to generate a minimum market value for tax <br /> purposes to cover the debt service of the bonds; <br /> City of Arden Hills is responsible for: <br />Ie 1. Building the relocated 14th Street; <br /> 2. Starting the construction of the relocated 14th Street by and completing it <br />I by , <br /> 3. Building the relocated Round Lake Road/Highway 96 intersection; <br /> 4. Starting the construction of the relocated Round Lake Road/Highway 96 intersection by <br />I and completing it by , <br /> Special Assessments will be levied against each phase until the building in that phase receives an <br />. occupancy permit and then the special assessments will be canceled. In theory, the largest risk <br /> for the City is before the buildings are built on the property. Once the buildings are given <br />I occupancy permits, then in theory the value should be present to allow for repayment of the <br /> bonds. Also, this is the time when Welsh will most likely sell the buildings. The elimination of <br /> the special assessments at this point removes the personal liability which large institutional <br />I investors will not accept, and hence would not buy the buildings. <br />I <br />I. <br />.. <br />I <br />