Settlement Summary
Main points of the agreement between City of Two Harbors and Developer
• The agreement allows five hotel/condominiums near the lighthouse on Agate Bay.
• The agreement allows four condominiums in the grassy area between the drinking water intake on the Burlington Bay side of the Point and the sewer plant. The road past Lake View Park on Burlington Bay will be extended across South Avenue onto his property, so prospective buyers will not have to drive past the sewer plant.
• The city will assist the developer with both projects by providing Tax Increment Financing (TIF) with 80% of the property taxes reimbursed to Cave on the Agate Bay project, and 66.66% on the grassy area project. TIF funds must be used for infrastructure on his own projects.
• Cave will retain the $150,000 paid to him by the city for the acquisition of the sewer plant property.
• The city will receive an unspecified amount of acreage on the east side of the Point as a park, but only if all Cave's developments have the necessary zoning changes and conditional use permits approved. Cave will retain naming rights to the park.
• Cave will drop his lawsuits against the City.
Downtown waterfront
•Van Hoven Park (by the Edna G.), the Legion parking Lot, the land under the Community Center and other formerly leased areas will be transferred to the City.
Pork City Hill
• The city will create a 25-year TIF district on Pork City Hill, with 80% of the TIF district proceeds to go the developer to extend utilities to his development. The city will attempt to annex Port City Hill from Lake County.
• TIF funds from the Pork City Hill district can also be used for extending utilities to his Highway 61 commercial property, and the city will assist in obtaining right-of-ways for him.