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Mike Mornson - Northwest Quadrant Redevelopment September 17, 2003 Page 4 Large Retailer: Small Commercial: Phase IA For Sale Housing: Benefiting properties: $1,200,000 $500,000 $325,000 $175.000 Paid up front or completion of roadway Assessed over term of bonds Paid at sale of units Assessed over term of bonds TOTAL $2,205,000 The City will most likely be required to sell temporary bonds (I-year call date) to pay for the construction up front then refinance the bonds once any prepaid special assessments are received. Any amount in excess of the anticipated amount of $2.205 million will be paid through Tax Increment generated from the project. b. Site Imurovements/Onen Space. The Redeveloper will pay for the open space/ponding and site improvements, which are estimated to cost approximately $1,430,000. They will be reimbursed by the City and HRA for a portion or all of the site!ponding improvements through Park Dedication Fees generated from the development (estimated at $205,000), any grants the City may receive and from Tax Increment. The site improvements may be phased over a three (3) year period if the City does not receive the $900,000 in LCDA funds it requested from the Metropolitan Council. The phasing of the site improvements will allow the Development Team to pay for the improvements as cash becomes available. The Development will be responsible for the costs associated with maintaining the storm water ponds and the City will be responsible for maintaining the open space around the storm water ponds. The City and Redeveloper are currently discussing coordination and responsibility for the maintenance, etc. 4. Miscellaneous. a. City Liauor Store. The Redeveloper will construct and furnish a new Municipal Liquor Store within the commercial development. It is anticipated that the Liquor Store will be constructed prior to demolition of the existing store so as to cause minimal disruption to the City's Liquor operation. Since Tires Plus will be required to relocate their business, the City will work with them to find a suitable site to relocate to. It should be noted that the City may need to condenm the Tires Plus lease if deemed necessary by the City Attorney. The Redeveloper will pay the cost to relocate the existing Tires Plus building and the cost to construct the new Liquor Store, up to an amount not to exceed $1,700,000. b. Cub Foods. The Redeveloper has a signed purchase agreement for the existing Cub Foods store for $10,850,000, inclusive of the restrictive property covenants. The Redeveloper intends to rehabilitate the store to upgrade its appearance to the quality of the new commercial development. It is estimated the cost of this "face lift" will be $580,000. The agreed upon purchase price of the store does not allow the Redeveloper to obtain any more debt on the property.