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Mounds View EDA August 22, 2005 Regular Meeting Page 13 Commissioner Flaherty asked for an explanation of the indication on Page 2-13, Subsection 2-21, Excess Increments, that indicates: “The EDA or City must spend or return the excess increments under paragraph ( c) within nine months after the end of the year.” Economic Development Coordinator Bachman explained that the EDA cannot hoard TIF dollars and if increments are being generated by TIF Districts, then projects must utilize those dollars. If there are no obligations, Ramsey County could say they believe it is excessive and needs to be redistributed. Commissioner Flaherty asked if that is based on the desertification of the District. Economic Development Coordinator Bachman explained that TIF Districts are created for the purpose of economic development. If the TIF dollars are not used they cannot be funneled to general fund dollars. The TIF dollars must either be used or the District decertified. Commissioner Flaherty drew the EDA’s attention to Appendix A, Introduction, indicating: “The current site has acreage that is not buildable and wetland relocation will be required.” He asked if that means this current contract is selling about 20 acres of swampland and the actual buildable land of the 72.2 acres is 52.2 acres. Economic Development Coordinator Bachman stated that is correct. Commissioner Flaherty reviewed the “but/for” qualifications detailed in Appendix F indicating: “While property could be sold to another developer for some other use, these scenarios are not feasible in the market due to various constraints mentioned above along with others. First industrial uses could not meet the market valuation due to the fact that they are single story in nature (can’t get to the same density as office), lack the amenities in design and construction and are traditionally valued at ½ the market value of commercial and office uses. Second, commercial retail uses have the same restraint in that the market does not allow for vertical commercial/retail development.” He asked if the Medtronic development is going up (vertical) so it creates higher density and higher value on the land. Economic Development Coordinator Bachman answered in the affirmative. Commissioner Flaherty noted that by those two statements, the City is getting better value than someone else coming in. Economic Development Coordinator Bachman stated that is correct. President Marty noted there are two resolutions for the EDA’s consideration.