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I I I Council Meeting Minutes September 9, 1986 Council Business, continued In response to Walt Witzke's, 771 Emerald Drive, question, Benke indicated it is the city's understanding that Harstad Companies will be the major tenant in the building and that a condition of the agreement will address those security considerations. Locke further explained that the assessment agreement is signed and filed with the County establishing what the value will be, which establishes tax dollars; the guarantee of the bond payments is from Harstad Companies and the strength of their company stands behind it rather than simply the building, Witzke asked if the city will tie their assets to it so that the city is protected if property values drop drastically; Benke stated that is the reason for the guarantees in the agreement and Harstad Companies is agreeing, with guarantees built in, that it will pay the equivalent as if it were $3 million. Motion by Schmidt, seconded by Williams, to DIRECT STAFF TO PRE- PARE FINAL DEVELOPMENT DOCUMENTS WITH HARSTAD COMPANIES BASED ON THE SEVEN POINTS OUTLINED IN THE STAFF REPORT; SET A PUBLIC HEAR- ING ON OCTOBER 14, 1986 TO EXPAND DEVELOPMENT DISTRICT NO. 1 AND ESTABLISH TAX INCREMENT DISTRICT NO. 12; GRANT AN EXTENSION OF SPECIAL USE PERMIT APPROVAL VN-244 AND SITE PLAN APPROVAL LP-192 UNTIL DECEMBER 23, 1986; AND TO ACCEPT HARSTAD COMPANIES'S RE- QUEST FOR CONTINUATION OF APPLICATION LP-200 UNTIL DECEMBER 23, 1986. 5 Ayes - 0 Nayes, Motion Carried Locke reviewed staff report concerning a preliminary resolution seeking Industrial Development Bond allocation for the Winfield Development, Inc. project; stating the city becomes the vehicle for financing lOB's, which does not cost the city anything; the burden falls upon the development; the procedure for receiving lOB's involves applying for an application from the State of Minnesota; timing is such that we can get the request for alloca- tion in before October 1, 1986, which gives us a great deal of certainty, but, after the first of October, there would be a great deal of competition, Schmidt stated, in essence, we are giving preliminary approval to this resolution, notwithstanding a number of things to be re- solved between the city and the developer; Locke confirmed. Motion by Gunderman, seconded by Williams, TO WAIVE THE READING AND ADOPT A RESOLUTION GRANTING PRELIMINARY APPROVAL TO WINFIELD DEVELOPMENT, INC.'S PROJECT FOR INDUSTRIAL DEVELOPMENT BONDS AND SET THE PUBLIC HEARING FOR SEPTEMBER 23, 1986. 5 Ayes - 0 Nayes, Motion Carried Page Seven Winfield Project: Preliminary Reso- lution for lOB's and set public hearing for September 23, 1986 Report 86-210 Resolution 86-90