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Agenda Section: VI I I-6 <br /> CITY OF NEW BRIGHTON <br /> Report Number: 9 7-2 7 2 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> IIIReport Date: DECEMBER 18, 1997 <br /> ITEM DESCRIPTION: CONSIDERATION OF A THIRD AMENDMENT TO THE REDEVELOPMENT <br /> AGREEMENT WITH CHARLES E. STARK <br /> DEPT. HEAD'S APPROVAL: <br /> MANAGER'S REVIEW/RECOMMENDATION: <br /> 7r% <br /> No comments to supplement this report '}1" °! ' _, Comments attached <br /> EXPLANATION/SUMMARY (attach supplemental sheets as necessary) <br /> Charles Stark is proposing to sell the New Brighton Lumber company site on First Street SW to Hillcrest Development. <br /> Hillcrest is proposing to use the property more or less as is. Stark never completed his original development plan for the <br /> site. A showroom/office building and additional warehouse buildings were supposed to have been built on the site. These <br /> buildings would have provided screening of the lumber operation's outside storage from 1-35W and First Street as well as <br /> increasing the City's tax base. The businesses that appear likely to lease the property from Hillcrest do not seem likely to <br /> complete Stark's original development plan.As a result, staff has been looking for ways to encourage Hillcrest to <br /> construct more structures on the site. An amendment to the existing development agreement with Stark is a way to <br /> accomplish this goal. <br /> is proposed for City Council consideration that the City authorize amending the redevelopment agreement with Stark as <br /> .means to provide Hillcrest with an incentive to develop the site further. The current redevelopment agreement provides 1 <br /> tax increment assistance to Stark for the construction of additional improvements on the site. It is proposed that this <br /> assistance be provided to Hillcrest instead. The assistance would be provided in the form of a"pay-as-you-go"note, so <br /> that assistance is only provided if new tax generating development is actually constructed. <br /> If the City wants to provide assistance for Hillcrest, it must act on the amendment to the redevelopment agreement before <br /> the end of 1997. That is the deadline for changes in the TIF district under the current TIF law. <br /> The proposed changes are being drafted by Jim Casserly and will be presented in greater detail at the City Council <br /> meeting. The proposed amendment is a no-risk means of encouraging continued improvement of the New Brighton <br /> Lumber Company site. <br /> RECOMMENDATION <br /> Motion to authorize staff to finalize and execute an amendment to the Redevelopment Agreement with Charles E. <br /> Stark dated December 1, 1992. <br /> Kevin Locke <br /> Director of Community Development <br /> • <br /> I:COMMDEV1CDI-97-CCIREPORTs1KEVIN1712STARK.WPD <br />