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Mounds View EDA May 24, 2004 <br />Regular Meeting Page 2 <br /> <br /> <br />President Linke questioned whether the Church would be paying the second half taxes. <br /> <br />Economic Development Coordinator Backman indicated that Michaels Investments has paid the <br />first half taxes and, provided the property is sold, the Church would make the second half tax <br />payment. <br /> <br />President Linke indicated that the payment due in August is based upon the April tax payment <br />that was made by Michaels so it seems appropriate that the City make the payment to them in <br />August. He then said that once the Church owns the property the reimbursements by the City <br />stop. <br /> <br />Community Development Director Ericson indicated that it is Michaels Investments’ position <br />that they did not consent to the action that was taken with regard to the Resolution adopted and <br />they need to consent to the termination and, without that consent, there is an active and in force <br />development agreement and the City is liable to make the payments to the developer. If it is not <br />assigned to the Church the City has to make payments and, if transferred to the Church then the <br />City would make payments as long as tax payments are being made. He then said that, once an <br />exemption is filed, then there are no further tax payments made and no payments required by the <br />City. <br /> <br />Vice President Stigney asked for a staff recommendation. <br /> <br />Economic Development Coordinator Backman indicated that part of his position has been that he <br />has not wanted to increase the liability of the City and, for that reason, he has not wanted to see <br />giving up the indemnification and feels it should remain. <br /> <br />Commissioner Gunn asked when the property tax payments would cease. <br /> <br />Economic Development Coordinator Backman indicated the payments would cease after the <br />Church makes the final payment. <br /> <br />Economic Development Coordinator Backman indicated the Church has expressed an interest in <br />having its tax-exempt status and would want to do that as quickly as possible. <br /> <br />John Grano indicated that the Church has entered into an amended purchase agreement with <br />Michaels where they waived contingencies and the Church agreed to reassign the TIF agreement <br />back to them. He then said that the Church would work with the City and the closing is set for <br />June 15, 2004. <br /> <br />Commissioner Marty commented that it appears that anything that would come in would be <br />forwarded to Michael Investments.