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Mounds View EDA April 13, 2009 <br />Regular Meeting Page 3 <br /> <br />expansion of the hotel would occur to increase the value and tax base, and additional jobs may be <br />created. Currently, it would be a burden on The Mermaid if required to pay one-third of the bond <br />note. <br /> <br />Vice President Stigney stated that expanding the tax base will not matter until the TIF District is <br />paid off. He stated support to shorten the life of the TIF District and pointed out that no <br />information has been provided regarding The Mermaid’s financial position so he is not able to <br />consider that matter. He stated he is not in favor of an “all or nothing” position but would like to <br />know what MoundsVista will offer to accomplish the amendment. <br /> <br />Commissioner Mueller noted that one bondholder has indicated no objection to not paying off <br />the bond and the other bondholder has indicated they want to be bought out. Economic <br />Development Specialist Steinmetz explained that when MoundsVista was considering an earlier <br />amendment, Western Bank indicated a willingness to buy out First Bank. However, noting has <br />been submitted in writing to confirm that remains the case. <br /> <br />President Flaherty stated he had hoped The Mermaid owners would be in attendance to answer <br />questions. However, they did relate to staff that they are unable to pay off one-third of the bonds. <br />He noted that The Mermaid is a struggling business, they are making attempts to gain solvency, <br />and that revenue may be needed to pay property taxes. <br /> <br />President Flaherty asked whether Mounds View assumes any risk by modifying the Agreement. <br />Executive Director Ericson stated it would not. <br /> <br />President Flaherty asked what is the benefit to retire a portion of the District. Executive Director <br />Ericson explained the EDA can selectively decertify parcels but could not decertify any Mermaid <br />parcels while a TIF note is associated with those parcels. The drawback is that the TIF dollars <br />otherwise generated on those parcels would no longer be available for street and utility projects <br />and the City’s budget anticipates those dollars will be available. <br /> <br />Vice President Stigney stated again he would like to know what MoundsVista is willing to do if <br />the EDA considers the requested amendment. He noted when the hotel expansion occurs, they <br />may request it to also be in the TIF District. <br /> <br />President Flaherty commented on the importance of balancing the needs of the City with the <br />needs of the property owner. He stated he would take that stance for any Mounds View business, <br />not just The Mermaid. <br /> <br />Commissioner Gunn stated she had asked for written confirmation from the bond holders in <br />addition to other information. She stated she is willing to table consideration until that <br />confirmation is received. <br /> <br />Commissioner Mueller stated she would like to hear from the business owners before the EDA <br />makes this decision.