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Mounds View EDA October 27, 2008 <br />Regular Meeting Page 2 <br /> <br /> <br />Commissioner Mueller said that the additional funds can be used for the Streets and Utilities <br />Program and removal of the parcels would impact the funding for that project. <br /> <br />Commissioner Flaherty agreed with Commissioner Mueller and said that there are three TIF <br />Districts and the funds are captured for City-wide improvement. He then said that he would like <br />to leave the parcels in the District. <br /> <br />Vice President Stigney said that he feels that TIF should be used for its intended purpose to move <br />development forward that would not go without assistance. He then said that he feels the District <br />should end at this time. <br /> <br />President Marty said that normally he is in agreement with Councilmember Stigney on this but, <br />he would like the District to continue at this point and said that leaving these parcels in the TIF <br />Districts is a difference of $1,694,770 that the City would have access to for improvements for <br />our streets and infrastructure. <br /> <br />Direction from the Council was to NOT proceed with any parcel de-certifications at this time. <br /> <br />B. Resolution 08-EDA-248, Authorizing a Modification to the October 2001 <br />Development Assistance Agreement with MoundsVista, Inc. <br /> <br />Economic Development Specialist Steinmetz reviewed Resolution 08-EDA-248 modifying the <br />Development Assistance Agreement with MoundsVista, Inc. She then said that the bonds were <br />$850,000 plus interest at 7.75% and the amount of TIF was $1.2 Million. <br /> <br />Vice President Stigney asked what happens if MoundsVista cannot establish the TIF amount <br />listed. <br /> <br />Economic Development Specialist Steinmetz indicated that MoundsVista would need to pay off <br />the bonds to the bond holders and the second option would be that MoundsVista would guarantee <br />any shortfall. The City would have no financial responsibility for this. <br /> <br />MOTION/SECOND: Stigney/Mueller. To Approve Resolution 08-EDA-248, Authorizing a <br />Modification to the October 2001 Development Assistance Agreement with MoundsVista, Inc. as <br />amended to clarify financial obligations. <br /> <br />Commissioner Mueller asked whether the assessor would be doing another assessment to ensure <br />the valuations. She then said that the original Resolution from 2001 did not list all five and she <br />would like that corrected. The Authority agreed. <br /> <br />President Marty agreed with this, but noted that there are conditions to be met outside of the City