The EDA previously approved a Contract for Private Development that included most of the block.  Since that time, the remaining property owners decided to sell and relocate.  This has increased the overall size of the development so that it now includes the entire block.  The project costs have now increased with the costs of the property acquisition along with additional costs for the redevelopment including additional bedrock and construction costs since the project is now larger.

BakerTilly has completed a new financial analysis based on preliminary development costs and property acquisition.  The new agreement includes the EDA's property acquisition costs including relocation expenses into a new split of future increment.  The city will also retain its annual ten percent administration fee to offset staff and administration costs for this TIF.

The numbers adjusted in the Agreement are as follows:

TIF Note to Developer $3,750,700

TIF to EDA over time per contract $1,078,600

Developer receives 77.7% of available tax increment

EDA receives 22.3% of available tax increment

Available Tax Increment = 90% of the tax increment (EDA keeps 10% for admin costs)

Developer to pay EDA the costs of the closing for Strunk and Currie properties (max amount $500,000) at its construction/development closing.

The EDA has previously approved transfer of the property adjacent to Doggie Doos at 313 W First Ave N.

Once Doggie Doos has relocated, the development can move forward.  First, utility relocations will occur, demolition of the existing site, site cleanup and remediation, and construction of the new building and parking facilities. The streets will then be reconstructed including new curb, gutter, sidewalks and paving and streetscaping.

Project completion is anticipated in 2021.