CCP 02-17-1998 - Laserfiche WebLink

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. CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Economic Development Authority (EDA) Board of Commissioners FROM: Brian Fritsinger, secretarY/Treasure~ SUBJECT: Tax Increment Pledge Agreement Backerollnd Over the past year, the City Council has been working with Welsh Companies on the development of the Gateway Business District (GBD). These negotiations resulted in the Development Agreement with Welsh, which requires the City to issue General Obligation Tax Increment Bonds to pay for certain public improvements to stimulate GBD development activities. The Purchase and Development Agreements were executed on February 13, 1998. On January 26, 1998, the City Council adopted Resolution #98-09, Providing for the Sale of $3, I 00,000 General Obligation Tax Increment Bonds, Series 1998A. The adoption of this resolution will . allow for a variety of public improvements to be undertaken. Puhlic Improvement Overview A January 15,1998 staff memorandum summarized the public improvements in two areas: 1. The relocation of Fourteenth Street and related utilities (water, sanitary sewer, and storm sewer) in order to support parcel assembly and improve site plan layout with respect to GBD zoning requirements. 2. The reconfiguration and resignalization of the Highway 96/West Round Lake Road intersection. While this intersection currently operates in a marginal capacity, it is estimated that additional traffic volume from GBD development activities will require the intersection to be upgraded for safety reasons. Purpose of P1edee Aereement For this project, the City has agreed to finance the project, which is being coordinated by the EDA. As indicated above, this will require the City to issue $3,100,000 in General Obligation Bonds to finance the various public improvements. In order for the project to proceed, the EDA and City Council needs to execute a pledge agreement which includes the following statements: .