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Mounds View EDA August 22, 2005 Regular Meeting Page 11 Mr. Inman stated it is indicating that they have up to ten years to spend the qualified costs that Mounds View will reimburse them for. If they only do Phase 1 and never do Phases 2 and 3 within the ten years, then everything goes away. President Marty referenced Appendix A-2, the project description under transportation indicating: “The Bridges AUAR, authorized by the City, reviewed all transportation issues related to the proposed development of the site. RLK-Kuusisto of Minnetonka prepared the AUAR documents.” President Marty stated he does not feel it is correct because the AUAR considered the freeways and trunk roads but the City street traffic was not taken into consideration. President Marty referenced the Exhibit B chart and asked for larger-sized print on future reports so it is easier to read. President Marty questioned Appendix F, the but/for for qualifications. Mr. Inman gave an example of someone buying a car that is worth $10,000 but comes to $17,000 when you add principal and interest. You wouldn’t say it’s a $17,000 car, you’d say it is a $10,000 car. He stated the same is done with the stream of TIF payments. The chart shows it is worth $15,700,000 in today’s dollars. This formula is a statutory formula that is required to be performed. The theory is that if the number at the bottom was rather small in comparison with the other two, it would show that you are not getting much market value. The larger number at the bottom the more the statute indicates you will be getting in market value than if you had not done this project. Mr. Inman explained that is the theory. President Marty stated this is close to what he had arrived at from the $32,700,000 figure, which was $15,752,681 so this is only off by about $50,000. President Marty referenced the second paragraph of Appendix F that includes a sentence that indicates: “In addition, site constraints require the developer to acquire adjacent land to preserve existing wetlands and green space which adds additional costs.” He stated the land being acquired is developed and asked about this comment. Economic Development Coordinator Bachman stated it comes into play if they don’t acquire the adjacent properties, the two businesses, and move them in Blaine. They would have to have a greater proportion in parking, wetland #2 may be lost, and it may be more difficult to get wetland mitigation to the east. This also allows for better placement of the park facility. President Marty read a sentence in Appendix F2 that indicated: “Therefore, the City concludes as follows: a. The City’s estimate of the amount by which the market value of the entire district