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<br />Prooosed PubliclPrivate TIF Proiect In)'estment: <br /> <br />The City wou1d provide a $392.615 investment up front to the deve10per for Phase I of the project. <br />Phase J includes the renovation of 60,000 square feet of the existing warehouse and the construction of <br />a new 99,480 square foot office warehouse. The City would provide an additional $347,695 in 1995 <br />when Phase n is started. Phase n invo)ves construction of a 58,000 square foot office/warehouse <br />building. The total TIP provided will equal $740,310. These funds are to be utilized as follows: <br /> <br />$75,000........ ..... ...... ..... <br /> <br />demolition of structurally substandard buildings <br /> <br />$200,000.. ..................... <br /> <br />environmental clean up of existing <br />buildings/asbestos/underground tanks/pipes. <br /> <br />$7S ,000.. ............. ....,.... <br /> <br />soil correction of existing soils and organic materials and <br />storage areas <br /> <br />$390,000... .................... <br /> <br />land acquisition <br /> <br />$740,000........ .... ..... ...... <br /> <br />Total Public Investment <br /> <br />$390,000.. ..................... <br /> <br />Potential Maximum Shared Soil Sub-District Clean Up <br />($780.000) estimated. <br /> <br />$7,440.000....... .............. <br /> <br />Total Private Investment <br /> <br />The City will be repaid with new taxes (tax increments) generated by the developer's new taxes over a <br />) 0 year perjod. The City win pay LGAIHACA penalties beginning in year 6. It may also be possible <br />to be a partner with the County, using CDBG funding to assist in reducing the term of the district by <br />one to two years. <br /> <br />Proposed Envirommmtal/Pollution Oean DD Proiect: <br /> <br />The City would also agree to create a hazardous soils subdistrict if necessary to generate im additional <br />S130,OOO per year for six years, up to a maximum of $390.000, to complete sub·soil cleanup and <br />removal of petro-chemicals and solvents. The exact amount and term will be determined when a <br />_ remediation plan is developed and approved by the Minnesota Pollution Control Agency. The City will <br />include the terms and amounts in the development agreement. <br /> <br />It is our plan to present the project informatíon in more detail at the Work Session. <br /> <br />Murray Kornberg, representing CSM, will also be present and have more information on the tenants <br />and deve10pment values. <br /> <br />The public hearing for this matter is scheduled for February 28. 1994. <br /> <br />. <br /> <br />2 <br />