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Mounds View City Council August 23, 1999
<br /> Regular Meeting Page 21
<br /> Finance Director Kessel clarified that the total numbers of the original estimates did not come up
<br /> to $130,000, however, these were estimates, and not bids, therefore staff slightly increased the
<br /> amount to insure that there would be adequate monies when the bids are received. He noted that
<br /> if the bids come in based upon the estimates they expect they will be $10,000 to $15,000 less
<br /> than that. He explained these were the same architects that handled the remodeling of City Hall,
<br /> and the City has worked with them in the past. He added this was the firm who bid in $4,000
<br /> less than the architects involved in the construction of the Community Center.
<br /> Finance Director Kessel stated staff had discussed TIF at the meeting that date, and had
<br /> determined this to be an eligible TIF expenditure, provided the contracts are entered into, or the
<br /> project completed prior to December 31, 1999.
<br /> Mayor Coughlin added that a letter of intent toward the concept would also suffice.
<br /> Council Member Stigney inquired if TIF funds were presently available, or if this was based
<br /> upon projected excess TIF funds.
<br /> Finance Director Kessel stated there are $100,000 TIF dollars available at this point in time. He
<br /> explained they would be receiving the grant funds for the Community Center. He noted the
<br /> number that has always been used prior to this $110,000 to $130,000, is 6.2 million. He stated
<br /> that actually the TIF funds that are required are $354,000 less than that, because they have
<br /> received a state grant, and those funds should be delivered to the City within the next several
<br /> days.
<br /> Council Member Marty inquired regarding the amount of this grant. Finance Director Kessel
<br /> stated it was $354,000.
<br /> Council Member Stigney inquired if this was a grant for the City to utilize at the Community
<br /> Center. Finance Director Kessel stated this was correct.
<br /> Council Member Stigney inquired why, therefore, TIF funds were necessary for the present
<br /> proposal. Finance Director Kessel explained these were still TIF funds, however, since the grant
<br /> was for the Community Center, the 6.2 million was what the Council had authorized up to this
<br /> point. He commented that if the present resolution is approved it would increase the amount to
<br /> 6.3 million, and if they subtracted the state grant, it would be $350,000 less than that.
<br /> Council Member Marty inquired if they could not just utilize the grant money, or if it was
<br /> already spent. Finance Director Kessel stated this money was intended for the Community
<br /> Center, not for showers,. He explained that, in addition, the City had to match the grant amount,
<br /> and would therefore have to spend twice the amount. He explained that they reimburse the cost
<br /> up to $350,000. He stated the total project cost with this resolution would be $6,330,000.00, the
<br /> funding source would be 5.9 million of TIF, and $350,000 state grants.
<br /> City Administrator Whiting stated the grant was received through the Department of Children
<br /> Families and Learning. He explained that part of the reason they obtained the grant was because
<br /> they were creating a space for youth, specifically 7 to 13 year old boys and girls, and in the
<br /> programming for them, they financed the construction of that project. He stated they had to
<br /> show the project was completed before they would be reimbursed, and those funds are going
<br /> back into the Special Projects account.
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