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Mounds View EDA January 24, 2005 Regular Meeting Page 4 2006. He stated that the good news is that certainly frees up TIF dollars for other projects that they can use, so from a TIF financial standpoint, they were pretty strong on that. MOTION/SECOND. Gunn/Stigney. To approve Resolution 05-EDA-202 Authorizing Payment of Pay-As-You-Go Developer Payments to Red Cent Management, L.L.C; Heartland-Mounds View Common Bond; Bridges Leasing Company; and Kenmark Partnership, L.L.C. Ayes -4 Nays -0 Motion carried. 7. REPORTS A. Discussion regarding the Hardee’s Restaurant Redevelopment and Caribou Coffee (Backman) – verbal report. Economic Development Coordinator Backman stated that the volunteer representatives on the Economic Development Commission had ranked various projects in order of importance, and that they had ranked the Medtronic Corporate Campus as number one. Number two is the Skyline Motel Acquisition and Redevelopment. Number three is the Pak Building Redevelopment. Number four is the Hardee’s Restaurant Redevelopment and Caribou Coffee. He provided the Commission with a full list of the other projects. Economic Development Coordinator Backman stated that Hardee's is no longer having an interest in their location, and there has been a buy-out that was accomplished during the last week of December. He stated that there has a settlement regarding termination of Hardee’s lease. He stated that the western half of the building will be leased by Caribou Coffee. He stated that it would take a total of $376,000 to bring the building up to the standard they would want to have. He stated if you subtract out the Hardee’s buyout amount of $226,000 and you look at the pay back period, they are calculating that to be about six years. He stated that Caribou Coffee would like to have a payback period of three years. He stated that the cost difference or gap is $109,000. He stated he had brought this topic up to the EDC last Friday, and they had adopted a motion unanimously to move ahead and pursue all options, including potentially TIF and other types of assistance, but there was no dollar amount. Vice President Stigney stated it sounded to him like Caribou wanted to come in, but they want some assistance. He asked why they couldn’t work with their own money. Economic Development Coordinator Backman stated that without assistance, he thinks they would end up with very little enhancement to the building and the site. Vice President Stigney asked who was to say whether they wouldn’t do more things without assistance.