08-22-2005 - Laserfiche WebLink

Home Browse Search

Mounds View EDA August 22, 2005 Regular Meeting Page 7 come from. He explained this section merely memorializes the fact that the EDA may do that. However, this is a method of finance and would need to be approved by the EDA by resolution. President Marty noted if the State compresses business taxes, as they have in the past, and the EDA gets into a bind, the EDA could transfer from the TIF pool in order to meet obligations. Mr. Inman stated that would not be the case for this situation because the contract limits the developer to whatever taxes they generate. If there is tax compression, they just get whatever they pay. The EDA would not be required or obligated to find funds to pay them. President Marty stated he understands this being included as a “safe gap” but he does not understand why interfund loans and transfers are included as $5 million. Mr. Inman explained that none can take place unless approved in the future and it is only included as an option. Director Ericson explained that the Highway 10 plan is adopted and if financing comes up short and there are excess dollars in TIF District No. 5, then the City could authorize a loan to borrow from that District. This resolution would allow that ability but it does not mean the City would have to approve an interfund loan. It would have to be approved by a resolution adoption. President Marty stated his understanding this TIF District is a pay-as-you -go so it will not be creating a pool. Mr. Inman stated it does not create a pool but experience is that it will be paid off early so in a certain period of time, the EDA will have to decide whether to shut down the district and put it back on tax rolls. Or, it could be used for a different project such as a highway project mentioned by Director Ericson. Commissioner Thomas stated it is the same as TIF District No. 3; the EDA can determine if it wants to end it early or use the funds for other projects. Economic Development Coordinator Bachman stated another option is that utilities could be paid from administration. President Marty referred to the last paragraph of Page 2-2, Subsection 2-5 indicating: “The EDA or City may acquire any parcel within the District including interior and adjacent street rights-of- way…The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan.” He stated he personally does not like condemnation and including it makes him uncomfortable.