04-13-2009 - Laserfiche WebLink

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EDA Item 7A - April 13, 2009 MoundsVista Amendment Discussion As detailed in the attached letter from MoundsVista’s attorney dated March 20, 2009, MoundsVista requested that the EDA modify the Development Assistance Agreement to allow for the sale of the hotel and the continuation of semi-annual payments to the bondholders. The City Council discussed MoundsVista’s request on March 23, 2009 and April 6, 2009 and indicated that an amendment to the agreement would be supported. They also suggested that MoundsVista pay off one-third of the outstanding balance of the bonds. The Council identified “one-third of the outstanding balance” as a proper payoff amount because MoundsVista’s March 20, 2009 letter stated the following: “The division of property taxes on the MoundsVista site as a whole, as it now exists, is approximately 2/3 Mermaid facility, 1/3 hotel…” City staff informed representatives of MoundsVista of the EDA’s position that one-third of the outstanding balance be paid off. MoundsVista responded that they are not in a position financially to accommodate such a condition. City Attorney Scott Riggs has drafted the proposed modification language to Section 4.1 of the Development Assistance Agreement. Attached is the amendment for the EDA’s review. MoundsVista is responsible for paying any and all fees associated with this modification. Next Step If the EDA agrees to the modification, MoundsVista will then request (at the April 13, 2009 City Council meeting) that the City Council approve the subdivision of MoundsVista’s property into two lots as shown in the below image (one lot for the hotel and another lot for the restaurant and banquet center). City staff has prepared a separate report covering the proposed final plat. Restaurant & Banquet Center Hotel Proposed Final Plat for The Mermaid 2nd Addition