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Mounds View EDA April 13, 2009 Regular Meeting Page 2 7. EDA BUSINESS 44 A. Resolution 09-EDA-252, Approving First Amendment to Development 45 Assistance Agreement between Mounds View Economic Development 46 Authority and MoundsVista, Inc. 47 48 Economic Development Specialist Steinmetz presented the past consideration of the 49 MoundsVista, Inc. (dba The Mermaid) TIF revenue bond agreement for assistance of $631,897 50 and request to modify the Development Assistance Agreement to allow for the sale of the hotel 51 and continuation of semi-annual payments to the bondholders. In response to the suggestion that 52 MoundsVista pay off one-third of the outstanding balance of the bonds, they indicated they are 53 not in a financial position to do so. Economic Development Specialist Steinmetz presented 54 staff’s recommendation to approve the first amendment to the Development Assistance 55 Agreement, allow for the sale of the hotel, and continuation of semi-annual payments to the 56 bondholders. If approved, the Council will consider the final plat to divide the property into one 57 lot for the hotel and a second lot for the restaurant and banquet center. 58 59 President Flaherty opened the floor for public comment. None was offered and it was noted the 60 applicant was not in attendance. 61 62 Commissioner Mueller noted if they wish to sell, the contract requires payment of the bond note. 63 Economic Development Specialist Steinmetz explained the MoundsVista attorney alluded to that 64 requirement; however, the contract does not contain such a requirement. In early negotiations 65 between staff and MoundsVista, several options were discussed but MoundsVista has clearly 66 indicated they need to sell the hotel and transfer those funds to their other property. In addition, 67 when the final plat is recorded, Ramsey County will require payment of taxes. 68 69 Vice President Stigney referenced a letter from the MoundsVista attorney indicating their 70 intention to sell only the hotel and that the Agreement requires payment in full of the note if any 71 portion of their property is sold. Executive Director Ericson clarified that the letter from the 72 MoundsVista attorney is incorrect because there is no such requirement in the Development 73 Assistance Agreement. Executive Director Ericson stated the EDA is under no requirement to 74 amend the Agreement but if an amendment is considered, the EDA can place a condition for 75 partial or full payment of the bond note. 76 77 Vice President Stigney stated his understanding the Agreement may not “require” payment but 78 the EDA can place that condition. He indicated he had asked staff to negotiate at least partial 79 payment in consideration for an amendment so the TIF District is reduced in some manner. 80 81 Commissioner Gunn stated even if they don’t pay down the note, payments will continue and all 82 that would be accomplished by payment of one-third of the note is to move up the District’s close 83 date. She noted that a lot is owed in back taxes, which may be equivalent to the one-third 84 amount. Economic Development Specialist Steinmetz stated she is not aware of the amount of 85