HomeMy WebLinkAbout95-08 - ADMIN Resolution - Economic Development Authority - 1995/12/18RESOLUTION NO. 95-8
RESOLUTION PROVIDING PRELRAINARY APPROVAL OF
BUSINESS POINTS ASSOCIATED WrM PARKSHORE ASSISTED LIVING
PROJECT
AS PROPOSED BY G & P PROPERTIES, INC.
WHEREAS, the St. Louis Park Economic Development Authority has undertaken
discussions with G & P Properties, Inc. (G & P) regarding the construction of an assisted living
project adjacent to the property at 3663 Park Center Boulevard; and
WHEREAS, G & P and the St. Louis Park Economic Development Authority have
discussed major business points associated with the assisted living project; and
WHEREAS, G & P has requested that the St. Louis Park Economic Development
Authority formally express its position on the business points which have been prepared to date.
NOW THEREFORE BE IT RESOLVED that the St Louis Park Economic Development
Authority provides preliminary approval of the following major business points associated with
the project:
Proiect: 1 85-90 unit assisted living housing project ("Project").
Land and Building Purchase G & P or an affiliated partnership would purchase the existing
and Resale: Norwest Bank Building and surrounding property that abut the
existing Park Shore Project Based upon these acquisitions, a new
parcel will be created to accommodate the project and be sold
to the owner of the project for 5600,000.
TIF Funding:, Tax Increment Financing ("TIF") in the total amount of
$800,000.00 would be provided to the Project owner. The TIF
would be funded in two phases:
(1) $600,000.00 on closing of the Project financing; and
(2) $200,000.00 on issue of a certificate of occupancy.
TIF Repayment: The TIF would be paid by the increased tax increment
generated by the Project It would bear interest at 8.25% per
annum.
TIF Collateral: The TIF would be secured by:
(1) A Minimum Assessment Agreement executed by the
owner of the Project ("Assessment Agreement").
(2) The personal deficiency guaranties of the TIF by
Mchael Gould and E. L Plesko, to be released when:
(a) the TIF balance is reduced to 5400,000.00; and
(b) no default exists as to the TIF; and
(c) the Project has operated on a break even or better
cash flow basis for twenty-four consecutive
months.
(3) Other security which may be required based on further
analysis of the project
In addition, completion of the Project would be assured
by naming the City as "dual obligee" on performance
bonds posted by a reputable contractor for the Project.
City Incentive: Based on the assumption that the City will be asked to issue
revenue bonds for the project, The City's current policy requires
the project owner to annually pay the City 1/8 of 1% of the
outstanding principal balance ofthe bonds.
As an incentive for the City and IDA to participate in this project
from a TIF perspective, the project owner will pay at a minimum
an additional 1/8 of 11/o, or such greater amount as can be
supported by the project, of the 501(c)(3) tax exempt bonds to be
issued by the City to finance the purchase and construction of the
project This amount would be paid based upon the same terms
and conditions as is required for the base 1/8 of 1% fee the City
normally requires for bond financing.
Iffinancing other than 501(c)(3) bonds is used for the project, the
additional fee would be calculated on the balance of such other
financing
BE rr FURTHER RESOLVED, that the aforementioned business points are intended to
be used as a framework to assist in the preparation of a development agreement for the project.
However, the St. Louis Park Economic Development Authority wishes to make the following
clarifications regarding the approval of these business points:
• This approval is preliminary in nature and does not bind the St. Louis Park Economic
Development Authority to approve a development agreement in the future or provide any
other approvals associated with the project
• The St. Louis Park Economic Development Authority reserves the right to modify the
aforementioned business points or add additional requirements as it sees fit.
• The SL Louis Park Economic Development Authority recognizes that there are a number of
land use and site plan issues associated with this project that are yet unresolved. The
developer is strongly encouraged to work cooperatively with the City of SL Louis Park to
resolve these issues. Approval of these business points in no way is intended to circumvent
the planning process or bind the City of St. Louis Park to approve land use applications.
Adopted by the SL Louis Park Economic Development Authority on December 18, 1995.
OFWWOWWFlal
/s/ Charles W. Meyer
Executive Director
7=3:RES8