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Mounds View EDA August 22, 2005 Regular Meeting Page 10 President Marty asked what the County’s administrative expenses would be and where payment would come from. Mr. Inman stated each County deals with TIF differently and some have a computer program or Staff time. Each year the County will provide the City with a list of expenses and they will deduct that cost from the TIF prior to giving it to the City. He explained that it varies from County to County and some bill for their expenses while others deduct the costs. Ms. Eldridge advised that Ramsey County goes through substantial analysis of the City’s TIF Districts. Mound View is now getting billed for District Nos. 1, 2, and 3 every year. The deduction is made prior to settlement and goes to the State Auditor for their administrative fees. Ramsey County will send a bill that will be split into the amount and divided by all Districts in the County so it is a flat fee. The other side of it is by parcel. The more parcels in the District, the more maintenance at the County level that is involved. She estimated it will be less than District Nos. 1 and 2. President Marty stated those dedications come from the City’s portion. Ms. Eldridge explained they come from the TIF increment as they do with the other Districts. Director Ericson clarified that it comes from the increment but does not reduce the City’s percent. The City still retains 5% of the increment collected. President Marty referenced Page 2-13, second sentence of the third paragraph, that indicates: “The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer’s agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration.” President Marty asked if these are the payments that Medtronic has. Mr. Inman stated that is correct and they are further limited by the agreement. President Marty referenced Page 2-15, Subsection 2-27, Other Limitations on the Use of Tax Increment, that indicates: “…Increment may only be spent on one or more of the following costs, improvements, or activities: …including structured parking; administrative expenses; wetland mitigation; soil correction …” President Marty asked if these are eligible corrections and if the Blaine property needs soil corrections, would it come from here. Mr. Inman stated the agreement does not say that. President Marty referenced Page 2-15, item 3, that indicated: “Five Year Limitation on Commitment of Tax Increments. Pursuant to the Special Legislation, Subd. 2(c), the five year rule under M.S., Section 469.1763. Subd. 3, has been extended to a ten year period. He asked if they will have up to 10 years from 2007 to create Phases 2 and 3.