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City Council Minutes <br />March 5, 2013 <br />Page 2 of 9 <br />3.7. FIRE PROTECTION AGREEMENT — CITY OF NISSWA - <br />$1,379.72 <br />3.8. FINANCIAL REPORT <br />COUNCIL MEMBER AKERSON SECONDED THE MOTION. MOTION <br />CARRIED 4 -0. <br />4. Open Forum <br />There was no one present for Open Forum. <br />5. Presentations <br />No presentations. <br />City Clerk requested the Mayor to consider the Lonesome Real Estate <br />issue at this time. <br />11.1. Lonesome Real Estate — Reauest to Restructure $100.000 Note <br />The City Clerk noted that Brandon Anderson has requested to restructure <br />the note that he owes to the City for the purchase of four lots in the <br />business park. <br />The Clerk informed the Council of the following: <br />1. In August, 2007, the City entered into a TIF Development <br />Agreement with Lonesome Cottage for $146,000. TIF increments are paid <br />to the Developer twice a year. <br />2. Lonesome Cottage purchased 6.95 acres from the City's industrial <br />park for $146,000, which equals the tax increment amount. <br />3. The city entered into a loan agreement with Lonesome Cottage for <br />$100,000 to allow the developer to make payments on a portion of the <br />land. The payments were to be paid on January 2nd of each year in five <br />installments <br />4. The developer is receiving about $23,500 per year in tax increment <br />and owes the City $24,833 per year for loan repayment. <br />5. The tax increment will continue through 2017. The Note to the City <br />will be paid off in 2014. <br />