HomeMy WebLinkAbout2005-04-26 CC Meeting Packet Enclosure. F
Oak Park Hei
Re for Council Action
Meetin Date Aril 26t 2005
A Item Title: Tax Increalent Financin TIF I Re ne st — A o Consultant
Time: 3 minutes
A Placement
New Business
Ori Department/Re
Re Si
Action Re . consider
Ericrilohnson. Citv Administrator
AlDvoint- Consultant
Back (Please *indicate if an previous action has been taken or if other public
bodies have advised):
As y ou are aware the Cit has received a TIF proposal from developer Mr. Tim Nolde.
It is necessar to contract with a consultant to review the proposal as submitted and prepare
appropriate documentation for ultimate Cit Council review and consideration.
Mr. Nick Skarich. of Northland Securities, a financial consultin firm that has worked with the
Cit in the past throu Mr. Steve Mattson, has presented a proposal to review the submitted
information and perform the necessar review of the TIF proposal — see attached. A preliminar
review will be performed to check g eneral compliance criteria and if certain parameters are met, a full
anal and plan will be prepared.
The applicant will be re to provide Northland Securities si more- information
than current received.
Staff therefore recommends that the Cit contract with Northland Securities for TIF proposal
review, preparation of a pre limiaaar and final TIUF plannin documents and completion of all
other re public notices and reportin re Contract amount is $5,900. All
expenses related to the proposal shall be paid b the developer ( Mr. Nolde).
Please also note that should this project ultimatel move forward, the Cit ma need additional bond
counsel assistance and would be contracted for separatel these fees would also be the developer's.
45 South 7` Street
Suite 2500
Minneapolis, MN 55402
NORTHLAND 6 , SECURITIES
(800) 851 -2920
(612) 851 -5900
Fax (612) 851 -5917
E X T E R N A L M E M O R A N D UM
DATE: April 21, 2005
To: Mr. Eric Johnson
CC:
`ROM; Nick Skarich, vice President
Northland Public Finance
RE: Qakgreen Villas .Phase Il
Hi Eric,
I have reviewed the Anchobaypro, Inc. proposal and agree that it is a good outline, but some further
information/clarification is required including a more detailed description of the project. In particular, the
qualification for the redevelopment district will be important. At an earlier date, I forwarded to Allen
Black and Tina Nolde a list of firms that perform those studies. They are all reputable firms including
LHB Architects, SEH, Yaggy- Colby, Bonestroo and Precision Architectual Services.
The discussion regarding the land to the north being included should involve the City's bond counsel.
This has been done in the past, but timing of the replat, etc. is vital as to whether or not this is possible
and compliant with MN TIF law. Overall the TIF district still needs to meet the "but for' findings.
The "but for" determination will mainly be a ftulction of the financial information. I would like to see a
schedule of construction, timing of unit sales and further detail on the costs. The City could tie the TIF
reimbursement to actual invoiced costs and actual sales proceeds. Overall, I think An.chobaypro is on the
right path and the project looks promising for the City of Oak Park Heights.
Regarding TIF services, our participation covers the TIF establishment process from A to Z. These steps
include:
1, All required County and School District notifications.
2. All required TIF documents /analysis.
3. Publishing required notices.
4. All State and County filings.
5. Coordination with bond counsel
6. Coordination/negotiation with developer.
7. Attendance at necessary meetings.
We would propose a flat fee of $5,900. we would recommend that a deposit, typically around $10,000,
be required from the developer to cover upfront City costs, including legal. we look forward to working
with you on this project. Feel free to contact one with any questions at (61.2) 851 -5907. Thank you,