CCP 09-22-1997 - Laserfiche WebLink

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. - . CITY OF ARDEN HILLS . MEMORANDUM DATE: September 19, 1997 TO: Economic Development Authority (EDA) President and Commissioners FROM: Brian Fritsinger, secretaryrrreasurec@) SUBJECT: Development Agreement with Welsh Development Company Requested Action - The City Council is asked to consider the approval of a Development Agreement between the City of Arden Hills and Welsh Development Company, LLC, Back~round The City Council has been working with Welsh Development Company, LLC for the past two years on the development of the Gateway Business District (GBD). The first phase of this development was the construction of the 154,000 square foot Manufactured Services Limited (MSL) building completed this summer. . What is the Description ofthe Proiect Included in the Agreement? The development consists of the construction of a total of at least 270,000 square feet of office/warehouse space, The redeveloper (Welsh) is responsible for the acquisition of all property on which the private improvements will be constructed. The development is expected to be constructed in three phases commencing in October, 1997, and concluding by August of 1999. Failure to build the phases in any particular order or by particular times is not a default so long as the redeveloper is current on its payment of the special assessments, All construction must be undertaken consistent with plans approved by the City and the Economic Development Authority (EDA), and the Planned Unit Development (PUD) approvals granted by the City, What Public Improvements are Necessary? The EDA and City will be responsible for the construction of the Highway 96 and the Fourteenth Street improvements. Those improvements will be completed in 1998, and will be paid for using the proceeds of City tax increment bonds. It is anticipated that the improvements to Fourteenth Street will begin in 1997, and to Highway 96 in 1998, The City and the EDA will also, at some time, undertake the West Round Lake Road improvements and either use the proceeds of the City's bonds to pay the costs or will undertake these improvements as a public improvement project and assess the cost against all benefited properties, Has the City Determined the Level ofthe Bonds to be Issued? The City has not yet determined the level of bonds to be issued in order for this project to proceed. Staffhas been working with Ehlers and Associates, and expects to have a formal . recommendation available at the October 14, 1997 City Council meeting. The bond is estimated to be in the area of $2.5 - $3,5 million. ------ c-