HomeMy WebLinkAbout2015-05-12 PACKET 05.B.01.
To: Economic Development Authority
From: Ryan R. Schroeder, City Administrator
Date: May 5, 2015
Subject: Accept Receipt of American Logistics DA amendments
The EDA adopted a development agreement with South St. Paul Agri-Properties at the March,
2015 meeting of the Board. The agreement is to facilitate an expansion of the existing facility
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at 7800 97 Street South in Cottage Grove.
It is typical, through the development process, for an item, here or there, to change. So long
as we see those changes as either ministerial or at least not substantial in nature we make the
appropriate changes at the staff level and keep moving forward on the development.
There have been a few changes through this development process for which we seek
acknowledgement by the EDA. The major deal philosophy, development process, and
development project continue as presented. However, at the time of the development
approval the project was to be constructed on an 8.12 acre parcel. Through the design
process that parcel has grown to 9.51 acres with corresponding changes in the math
associated with the sale of the property. We’d ask the EDA to affirm those changes as
substantially similar to the prior approval. Changes are as follows:
Cost / (Revenue) March May
City Property Acquisition $618,988 $724,948
Area/Connect./Permit etal $504,566 $544,670
Due at Closing ($374,587) ($469,234)
Financed 5%/5YR ($220,997) ($270,384)
Estimated TIF ($530,000) ($530,000)
Unallocated $ 2,030 $ 0
The project, for tax purposes, continues to have a minimum estimated market value
requirement of $5.8 million. City development costs in property acquisition, infrastructure and
development fees and charges are reimbursed through the receipt of future tax increment, the
sales proceeds due and closing and the sales proceeds financed by the City on behalf of the
developer. All city costs are projected to be reimbursed during the life of the tax increment
district.
EDA Action:
By motion acknowledge changes in the American Logistics development pro-forma as being
substantially similar to the March 2015 Development Agreement approval.