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Mounds View EDA July 26, 2004 <br />Regular Meeting Page 2 <br /> <br />associated with demolition and clearing, Rice Creek Watershed District stormwater management <br />requirements, and/or park dedication feeds. The source of funds for the $75,000 grant would be <br />Tax Increment Financing funds. <br /> <br />Economic Development Coordinator Backman stated Briggs & Morgan, the City’s TIF legal <br />advisor, provided City Staff with a draft of the Development Agreement on July 12, 2004. <br />Velmeir’s legal advisor reviewed the agreement last week and suggested four changes in the <br />document. These were deemed reasonable and were incorporated into Development Agreement. <br /> <br />Economic Development Coordinator Backman stated that Staff recommends that the Mounds <br />View EDA approve Resolution 04-EDA-191 that approves the development agreement with <br />Velmeir to provide a grant for $75,000 to facilitate the redevelopment of the vacant commercial <br />property located at 2800 County Highway 10. The funding source would be Tax Increment <br />Financing funds from District No. 2. It would be paid to Velmeir on a reimbursement basis and <br />anything above $75,000 would be borne by the developer. <br /> <br />Commissioner Marty asked when the $75,000 would be re-paid, and Economic Development <br />Coordinator Backman stated that this was in the form of a grant. <br /> <br />Commissioner Marty asked when the TIF District would make up the money in order to decertify <br />this property, and Economic Development Coordinator Backman stated that the property would <br />be developed over the next six to eight months, and it would be on the tax rolls for 2006. He <br />stated the taxes would be approximately $100,000 per year. <br /> <br />Commissioner Marty asked if they could decertify the property in a year, and Economic <br />Development Backman stated probably in two years. <br /> <br />Commissioner Marty asked about park dedication fees, and President Linke stated that they <br />would be receiving park dedication fees. <br /> <br />Commissioner Marty stated he would feel more comfortable taking the wording regarding park <br />dedication fees out of the resolution. Commissioner Gunn agreed, saying it appeared that the city <br />is paying the city. <br /> <br />MOTION/SECOND. Marty/Gunn. To approve Resolution No. 04-EDA-191 as amended, <br />removing all language regarding park dedication fees. <br /> <br />Commissioner Stigney stated he would not support this drug store by voting to help them with <br />TIF funds. <br /> <br /> Ayes – 3 Nays – 1 (Stigney) Motion carried. <br />