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EDC Minutes July 15, 2016 Page 7 of 10 The developers are working with their architects and would prefer not to approach the City until they have a more finalized plan. The developers are also monitoring the available funds of the Tax Credits which have been drying up do to the popularity of the program. The developers have indicated that they are still on track to break ground this fall; however staff believes that a spring ground breaking is more realistic. Commissioner Helgemoe suggested that since the Tax Credit program funds are drying up and there is a gap, perhaps this means the project won't be moving forward. Beeman said the developers don't seem swayed by the gap in financing and they appear confident that the project will move forward. Commissioner Freichels asked if there was a reason they weren't asking for the Housing TIF. Beeman said that even with a Housing TIF and a land write-down there may still be a gap in financing and the Housing TIF also requires a 20% affordability aspect. Originally they wanted to do an all market rate project. Freichels asked if they used a Housing TIF in Osseo. Beeman said, as he understands it, they did use a Housing TIF in Osseo that triggered the affordability of certain units. Helgemoe asked if the Commissioners had any more questions. Hearing none, Beeman moved to the next item on the agenda. Business Retention & Expansion Visit (BR&E) Updates Coordinator Beeman informed the Commission that a business owner is planning on moving into the former Snap Market space as soon as he returns from his vacation and has plans for an off-sale liquor operation. BioClean is still looking for a location for its truck franchising operation. They would keep the existing building as its main office and would like the second building to be located within a five mile radius of Mounds View. Helgemoe asked if Beeman knows the price that the Skyline Motel has come down to in the negotiations. Beeman indicated that he can't release that information as it is part of the negotiation process. Beeman said the property is not formally listed, the owners are taking offers and don't seem to be motivated to sell. The price that the owners came down to was still so high that it wasn't feasible to even consider a TIF as it was felt that the City shouldn't be rewarding a business owner for not negotiating. Beeman stated, we are using tax payer's money so we need to be cognizant of how we are using those funds. The owner of BioClean was working with a contractor to negotiate with the owners of the Skyline Motel and since the Skyline Motel owners weren't willing to negotiate a reasonable price, the deal fell through. The BioClean owner wants to build his building in or around Mounds View. Beeman said that Mounds View is strategically located along 1-35 and this makes the land valuable. The land will continue to be valuable as improvements are made with the addition of the MNPASS lane, Rice Creek Commons development, and the limited land availability in Mounds View. Mounds View Square still has six vacancies and has shown interest in locating a tap room business once the City has passed the proper ordinances. The Tap Room Ordinance is expected to be passed in August. Beeman stated that he has received about three different inquiries on tap rooms so far and he has provided them the square footage and available location information.