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Mounds View EDA September 25, 2000 <br />Regular Meeting Page 4 <br /> <br />President Coughlin asked if Economic Development Coordinator Parrish needed direction from <br />the EDA and Mr. Parrish said he did. <br /> <br />MOTION/SECOND: Coughlin/Quick. To direct Staff to use pre-1997 interest monies to <br />purchase the property at 7861 Groveland Road. <br /> <br /> Ayes – 4 Nays – 1 (Stigney) Motion carried. <br /> <br />B. EDA Direction to EDC. <br /> <br />It was noted that for the last two years, the EDC has devoted a considerable amount of effort to <br />updating the Economic Development Component of the Comprehensive Plan and examining <br />several TIF related items. However, the Commission’s agendas are relatively open in the <br />upcoming months. Accordingly, direction is being requested from the EDA for specific items for <br />the EDC to address. The following two items are suggested. <br /> <br />I. Use of Pre-1997 interest earnings. <br /> <br />It was noted that the Office of the State Auditor has determined that interest earnings on TIF <br />funds prior to July 1, 1997 are not subject to TIF restrictions. Mr. Jim O’ Meara, the EDA’s TIF <br />attorney, has reaffirmed this position. Currently, there is approximately $1.7 million in interest <br />earnings (This figure is an estimate that needs to be confirmed with the Finance Director). <br />Minimally, the pre-1997 interest earnings should be transferred into a specific fund to distinguish <br />it from existing TIF funds. If the EDA desires, the EDC could evaluate potential options. Some <br />preliminary options include: <br />• Establishing a Highway 10 Special Revenue Fund to provide revenue for any future <br />safety improvements, infrastructure, and/or redevelopment associated with Highway <br />10 <br />• Establishing an Economic Development Special Revenue Fund to fund a variety of <br />economic development and housing projects / improvements throughout the City <br />• Transferring revenue to existing funds <br />• Other suggestions <br />• A combination of any of the aforementioned options <br /> <br />President Coughlin inquired as to if the City could utilize pre-1997 interest funds for general <br />infrastructure redevelopment. <br /> <br />Economic Development Coordinator Parrish indicated how the funds were used was up to the <br />EDA as a policy decision. <br />