Laserfiche WebLink
<br />Regular City Council Minutes - 07/21/03 <br />Page 3 <br /> <br />Partners, the development arm of Presbyterian Homes. <br /> <br />Mr. VanSlyke reviewed concerns of current tenants at <br />Hamline Shopping Center, with 4-5 current tenants <br />expressing interest in relocating in the new retail space at <br />the proposed rental rate. Mr. VanSlyke addressed the <br />number of tenants desiring to relocate from the shopping <br />center, due to the incompatibility of their business in the <br />new facility or ability to pay the increased lease fees. <br /> <br />Mr. Dan Wilson addressed the associated costs for <br />relocation of current tenants, with Presbyterian Homes <br />responsible up front for those costs, and seeking <br />reimbursement under tax increment financing on a pay-as- <br />you-go basis for those costs of relocation. <br /> <br />Mr. Wilson briefly reviewed the project financing and the <br />short and long-term costs anticipated to be incurred by <br />Presbyterian Homes between the relocation of current <br />tenants and future realization of revenue-generating retail <br />leasing fees. Mr. Wilson further reviewed the anticipated <br />number of years of increment to the developer (8-9 years) <br />and options available for the City to use excess increment. <br /> <br />Discussion items included the rationale for requesting TIF <br />for this project and State Statute requirements; the public <br />benefit of the project and ramifications of relocation of <br />tenants at their discretion, whether within our outside of <br />Roseville; the acceleration of the project if developers <br />didn't need to await lease expirations of current tenants; <br />why the developer didn't incorporate relocation costs into <br />their project financia1s to avoid cash shortfalls; possibility <br />of using revenue bonds and restrictions that would be <br />incorporated for the residential portion of the proj ect; <br />difficulty over the last few years in leasing retail space in <br />the existing building given the pending demolition and <br />reconstruction; current lease rates and proj ect lease rates <br />(currently $8-9 and proposed $15 per square foot); and <br />uniformity of the formula used for relocation costs or <br />payment in lieu of relocation and applicable caps. <br />