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MINUTES SPECIAL CITY COUNCIL MEETING ~ v DECEMBER 6, 1984 A special meeting of the Falcon Heights City Council was called to order at 8:20 P.M. by Mayor Eggert. Mayor Eggert, Councilmembers Ciernia, Baldwin, Hard and Chestovich. Also PRESENT present were Attorney Gasteazoro, Attorney Ippel, and Fiscal Consultant Afelbacher. None. ABSENT Attorney Ippel presented proposed Resolution 84-43 relating to Tax PROPOSED Increment Financing and Industrial Revenue Bonds for development of the DEVELOPMENT southeast corner of Larpenteur and Snelling, together with the develop- ON SE CORNER er's application (Milton Cohen). Mr. Cohen explained that the partner- LARPENTEUR/ ship has not yet been formed, but will consist of himself (75%) and SNELLING his brother Harvey (25%). The property to be developed is at present owned by Property Growth Limited, and purchase of the property will be one of the requirements in the loan agreement. Attorney Ippel stated that there are funds in the State Industrial Revenue Bond Pool for 1984 and although it is past the deadline for application, there is a method by which application can be made at this date. Rich Johnson, Piper, Jaffray and Hopwood, explained that his firm will put up the required one percent fee and enter into an agreement with Mr. Cohen. Fiscal Consultant Apfelbacher presented his letter dated December 6, 1984, regarding Tax Increment Revenue Bonds, and reviewed each item with Council. He explained the difference between Revenue Bonds and General Obligation Bonds, the advantages, and disadvantages of each, and stated that most Tax Increment Financing Bonds have General Obligation backing. Attorney Ippel stressed that issuance of bonds with G/0 backing is less expensive thus allowing more funds for improvements, etc. Mr. Johnson concurred with the Attorney. Eldon Metaxis, owner of the Round Bobbin Sewing Center, located in the building which would be demolished for redevelopment, expressed concern for the merchants now leasing space in the existing building. Mr. Cohen stated that the new building would give an advantage to the merchants as there will be more people entering the new facility. He also assured Mr. Metaxis that the present tenants would be welcome in the facility. Following the discussion, Mayor Eggert moved, seconded by Councilmember Chestovich, that Resolution 84-43 be adopted. Motion carried unanimously. RESOLUTION 84-43 RESOLUTION 84-43 RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE ISSUANCE OF REVENUE BONDS TO FINANCE TIiIS PROJECT, AND CALLING FOR A PUBLIC HEARING THEREON AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF TAX INCREMENT BONDS FOR THE PROJECT BULLSEYE Attorney Gasteazoro informed Council that Bullseye Golf wishes to GOLF REQUESTS install a small paint booth in the municipal liquor store building which TO PLACE PAINT is now being rented by Bullseye, and that she would not recommend allow- BOOTH IN LIQUO STORE BUILDING DENIE