Laserfiche WebLink
<br /> <br />If/'" i <br /> <br />REQUEST FOR COUNCIL ACTION <br /> <br />DATE: 7-25-88 <br /> <br />ITEM NO.: 8- r <br /> <br />DE;partment Appro 'lCll: <br /> <br /> <br /> <br /> <br />Item Des~ <br /> <br />M&nager Reviewed: <br /> <br />Agenda Section: <br />Hearings <br /> <br />~ <br /> <br />Authorization to enter ~nto devclopm~nt <br />agreement with Can-Amerlcan. <br /> <br />Tax increment 1S belng proposed to wr;te down the cost of land to <br />what is a proper market value for mUlti-family development. With <br />respect to the Can A~ project, the developers are paying <br />approX1Mately $5,299,699.00 for the site. Falr market value, which <br />runs from $3,500 to $4,000 dollar~ pe~ unit, would result in a fair <br />marked value of $1,094,000. Subtracted from the purchase price, <br />Can AM could technically ask for $4.2 mlllion '-ollars in increment. <br />However, based on the fact that the land O\.mer hC'\s reduced the <br />initial pr1ce by a ~illion dollar6 based on a deferred payment <br />scenario, can A~erl~an will be asking for 3 million. W1th t-; <br />1ncrement env1sioned at the rate of $398,000 per year, the project <br />payout would be com~leted in 12 years. <br /> <br />This agreement 15 structured on a paV-as-{ou-~Q approach, and thus <br />is struct~red to be virtually risk free for the city. A summary of <br />the current proposal 1S attached. <br /> <br />COUNC1L ACTION REQUE5TED: Mot.lon to approvf'jcteny luthorizatl.on to <br />enter into development cgreement with <br />Can-American. <br />