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<br />~ <br /> <br />e <br /> <br />. <br /> <br />. <br /> <br />Direction for development of Morris Communications property <br />Page Three <br />May 17, 1999 <br /> <br />Budl!et Impact <br />The third option, "Sell to the City lED A," is the only one that has short-term cash implications. <br />Clearly the EDA is presently financially stretched, given the unforeseen requirements of having <br />to totally fund the Round Lake Road/Highway 96 intersection up front without County <br />participation. The 1998 bond proceeds are spent, TIF District No.2 (Round Lake Office) already <br />owes the PIR Fund $475,000 for soil correction and land writedown, and will probably borrow <br />an additional $600,000 on a short-term basis from the PIR Fund to satisfy the Forest Lake <br />Contracting, Inc. obligations. Future positive factors will include selling the remnant <br />Indykiewicz parcel, reimbursement from the County, and final building valuations on Welsh <br />Phases II - IV with resulting known tax increment. <br /> <br />In short, it appears that taking advantage ofthe Morris property acquisition opportunity in a <br />traditional manner would be difficult. However, if Morris is amenable to a longer installment <br />sale method, this approach may better match the EDA's repayment resources while still allowing <br />the EDA to take advantage of the purchase option. <br /> <br />Recommendation <br />None. Staff is requesting direction from the City Council on what direction they wish to proceed <br />with on the Morris Communications property. <br /> <br />cc: <br /> <br />Gary Gandrud, Faegre & Benson <br />