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Mounds View EDA August 22, 2005 <br />Regular Meeting Page 6 <br /> <br />almost $1 million higher than that and does not include almost $17 million in interest being paid <br />to Medtronic. <br /> <br />Mr. Inman explained that this is a budget and the amount they get will be limited by the contract. <br />That limit is $14.8 million. He explained that this is an estimate and the EDA can ago lower but <br />cannot go higher so it is generally estimated on the higher side. <br /> <br />City Attorney Riggs concurred that there is a cap of $14.8 million. <br /> <br />Mr. Inman stated the EDA is legally obligated to $14.8 million and the interest would be on top <br />of that. <br /> <br />President Marty noted there will be almost $17 million of interest on top of the $14.8 million <br />amount. <br /> <br />Economic Development Coordinator Bachman noted that administrative costs show 10% but the <br />cap is at 5% so that would be a difference of about $1 million less in expenditures. He restated <br />this is a budget estimate and if there are additional increments because of larger valuations, this <br />could get paid off early and back on the tax rolls in 19.5 years. In that case, less interest would <br />be paid. <br /> <br />Mr. Inman stated they tend to recommend to give the broadest range of possibilities. That is why <br />Staff recommended the parcel be included and why the budget is somewhat higher. He noted <br />that interest would have to be paid in any case no matter how it is financed, even if bonds are <br />issued. The interest is to finance the cost of the improvements. <br /> <br />President Marty noted the administrative costs would be about $1 million less so the full <br />$2,100,000 would go to Blaine for the land acquisition. Mr. Inman stated that would be correct if <br />it got that far down in the “pecking order.” <br /> <br />President Marry read the Interfund Loan Requirement indicating: “If the City wants to pay for <br />administrative or other expenditures from a tax increment fund, it is recommended that a <br />resolution authorizing a loan from another fund be passed prior to the issuance of the check.” He <br />asked if there are any plans for interfund loans. <br /> <br />Mr. Inman stated it is on the budget page. <br /> <br />President Marty asked where those funds would come from. <br /> <br />Mr. Inman stated they are defined to give flexibility and if the EDA decided to do that, Staff will <br />bring back recommendations and resolutions for approval that identifies where the funds would