US Bancorp's plans were delayed almost four months, and theensuing changes cost the bank project, under development byMinnetonka, MN-based Opus Corp., an estimated $2 million to $3million in TIF funds.The city covered the shortfall with a bridgeloan as part of a $12-million to $14-million TIF package approvedlast month.

"They were raring to go," says Brian Sweeney, the city'splanning and economic development director. The Minneapolis-basedfinancial services company will spend about $65 million for theproject.

The tax reform legislation also created a grant fund of $91million for fiscal 2002 and $38 million for each year thereafter tofill the gap between the lower property taxes and TIF collections.The city has yetto decide whether it will apply for thesupplemental funds.

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