As part of the larger development of the western side of Canterbury and construction of new public roads, the need for a large parking lot for public parking, buses and rideshare was identified.

The redeveloper will purchase the property, develop the parking lot and then deed it to the EDA in exchange for a $1 million TIF Note.

With this particular TIF Note, it is a pay as you go note.  The redeveloper would be borrowing the $1 million on its own towards its cost of the purchase and construction of the parking lot and would receive payment of increment based on development of the amphitheater and other future development to the south.  The city is in a priority position on the increment for any need for bond repayment.  Currently there is adequate development in the Canterbury redevelopment area to cover the city's TIF bond obligations.  Should that change, the city is in first position to receive any increment from this redevelopment prior to any repayment to the redeveloper.  The TIF increment is already included in the TIF plan total amount.

There is a separate parking license agreement that is part of the Contract for Private Development that allows:

• Redeveloper will have exclusive use of the Parking Lot without charge for 75 days per year, which number will be subject to increase if the number of events at the Amphitheater exceed that that number.
• Redeveloper may charge for parking at the Parking Lot in conjunction with Amphitheater events.
• On days when no Amphit heater events occur, the public shall be allowed to park without fee.

• Redeveloper shall not be obligated to remove snow from the Parking Lot until and unless and until development occurs on Outlot B.
• Redeveloper shall be responsible for ordinary maintenance and repair of the Parking Lot and insurance.

This public parking lot is planned to be used the other 290 days a year by the future development to the east and south for those uses the Canterbury will be developing once barns are demolished and infrastructure is installed.

The redeveloper, subject to a PUD Amendment, at a later date, can repurchase the parking lot from the EDA for $1 subject to the termination of the TIF Note.