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Mounds View EDA April 13, 2009 Regular Meeting Page 5 MOTION/SECOND: Gunn/Hull. To Waive the Reading and Approve Resolution 09-EDA-252, Approving First Amendment to Development Assistance Agreement between Mounds View Economic Development Authority and MoundsVista, Inc. Commissioner Mueller asked when the closing date would be if this is approved without requirement for advance bond payment. Mr. Hall stated the scheduled closing is April 30, 2009, and the buyer owns seven other hotels in the Twin Cities area. The appraisal will be completed this Wednesday. Commissioner Mueller asked if property taxes will be paid by May 15 if the sale does not go through. Mr. Hall stated taxes would not be paid. President Flaherty stated this business is attempting to reorganize to be more viable and payment of taxes is an important consideration. He stated he would consider the same action for any business in Mounds View that came before the Council. Vice President Stigney noted that Mr. Hall has indicated that he cannot pay 10% or the deal would fall through. Mr. Hall stated he did not make that implication. Vice President Stigney stated the motion establishes a precedence by granting a request of a business and its offering absolutely nothing to the City. He noted the tax payers would gain benefit if the TIF District is shortened. Mr. Hall suggested that would be a windfall for the taxpayers since the money would come from his pocket. Vice President Stigney stated if they cannot support 10% then he questions whether the business is even viable. President Flaherty stated he understands it would not stop the project from moving forward but could impact The Mermaid’s operation, future hiring, and cause a possible reduction in staff. AMENDMENT MOTION/SECOND: Stigney/Mueller (for discussion purposes). To Waive the Reading and Approve Resolution 09-EDA-252, Approving First Amendment to Development Assistance Agreement between Mounds View Economic Development Authority and MoundsVista, Inc., as amended to require a minimum 10% payment of the one-third TIF bond, which gives the taxpayers some benefit. Vice President Stigney stated he has seen no written documentation supporting Mr. Hall’s comments about their financial insolvency. Commissioner Mueller stated she understands the desire for “give and take” by both parties but when she thinks about the jobs involved and the business owner coming before the EDA with a “cry for help,” the $13,666 (10% of one-third) will not make that great of an impact to the City’s budget. However, it could make a great impact to the jobs of the employees at the business. Commissioner Mueller stated she would like to see some “give and take” in the negotiation but this business has been creatively trying to solve fiscal issues during difficult economic times to stay afloat in an entertainment business. She stated the EDA needs to see some “gray” between