HomeMy WebLinkAbout07/08/1997 TENTATIVE AGENDA
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
SHAKOPEE, MINNESOTA
LOCATION: City Hall, 129 Holmes Street South
ADJ.REG.SESSION TUESDAY, JULY 8, 1997
President R. O. Sweeney presiding
1. Roll Call at 4:30 P.M.
2. Receive the proposal from the Scott County Housing and Redevelopment
Authority for the development of Blocks 3 and 4
3. Other Business
4. Adjourn to Tuesday, July 15, 1997 at 7:00 P.M.
TENTATIVE AGENDA
SHAKOPEE CITY COUNCIL
SHAKOPEE, MINNESOTA
ADJ.REG.SESSION TUESDAY, JULY 8, 1997
Mayor Jeff Henderson presiding
1. Roll Call at 4:30 P.M., after the EDA meeting
2. Other business
3. Adjourn to Tuesday, July 15, 1997
•
SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
16049 Franklin Trail S.E.#104 Prior Lake,Minnesota 55372
(612)447-8875 Fax(612)447-8865
All. ith .
ILII William I.Jaffa
Executive Director
July 2, 1997
Robert Sweeny, President
Economic Development Authority
CITY OF SHAKOPEE
129 South Holmes Street
Shakopee, MN 55379
RE: BLOCKS 3 & 4 REDEVELOPMENT PROJECT
Dear President Sweeny and Honorable Members of the Shakopee EDA:
I am pleased to inform you that the Scott County Housing and Redevelopment
Authority's Board of Commissioners met as a Committee of the Whole on Tuesday, July
1, 1997 and recommended formal approval of the project scope and proposed financing
structure to be reviewed and considered by the Shakopee Economic Development
Authority on Tuesday, July 8, 1997.
On behalf of the Board of Commissioners, I thank you for this opportunity.
Sincerely,
Wi ' mI. Jaffa
Executive Director
WIJ:ejm
cc: Mark McNeil, Shakopee City Administrator
SC-HRA Board of Commissioners
Maynard Harms, District I Clarence Kaiser, District II Marjorie Henderson, District Ill
Gene White, District IV James Siekmann, District V
An Equal Opportunity; Affirmative Action Employer
cf:WIJ/BLK3&4.SHK
f
July 8, 1997
BLK 3 & 4 NOTES
1. City's overall pledge cap remains unchanged.
2. Housing Authority is the only party required to bring additional cash to the table.
Up $17,007 from $106,099 for a total annual cash payment of $123,106 for 30
years = $3,693,180.
3. The city will own the land and ground lease it back to the HRA, thereby giving the
city an ownership position in the project.
cf:WIJ/BLK3&4.SHK
.. ;
Scott County Housing & Redevelopment Authority
Riverfront Project
City of Shakopee, Blocks 3 & 4
Retail and Housing Development
pgject Parameters:
• ----Underground Parking Stalls
• 25,373 Square Feet of first floor Retail Space
• 52 second and third floor, One and Two Bedroom Apartment Units
Current Financing Plan $8,458,000
increased costs:
• 1997 State legislature reduced property tax
rates resulting in less tax increment generated
by the tax increment district;
• Increased Construction costs due to
OW-ex/1'14r [did construction go up from last
city council meeting?1;
includes all Design Committee
recommendations:
• All brick building
• Fiat Roof
• Plaza Area
• Skyway connecting apartment floors SUIVTI�
Additional Cost: $----- g6D, AREA L T y
I r e
Master Lease Tenant for Retail portion
• Local Scott County resident leading Master Stephen C. Dombrovski, CSM, CMD
President
Lease tenant investment group;
+ Master Lease tenant required to maintain $5 2550 University Avenue W. Office 612-333-3962
Suite 460-S Cellular 612.720-9370
million net worth and certify annually; St.Paui,MN 55114-1904 Fax 612-645-3947
• 30 Year Lease with net lease rates of$8.50 for
first 10 years, $9.00 for next 10 years and
$10.00 for final ten years of lease;
• Guaranty rent payment annually;
• City enters into Ground Lease with HRA for$1
per year as long as HRA is owner of retail
•
portion of project, if HRA is no longer the owner,
City can raise the annual Ground Lease
payments
Construction Cost reduction on June 12th of $ /.2‘, /IV
Proposed City Contribution:
• City back-up pledge of$5,355,000
• City purchases Gross Revenue Bonds of
$870,000
`City will receive a 6,00% return on the bonds
equivalent to the return the City is receiving on its
current investments; the nvestment is liquid and can
be sold in the future.
Proposed HRA Contribution:
• $123,106 annual cash flow pledge for the life of
the Bonds
Timing:
I