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Mounds View EDA April 13, 2009 <br />Regular Meeting Page 3 <br /> <br />back taxes owed. Commissioner Gunn stated a willingness to approve the amendment since the 86 <br />TIF District will continue, she would like the business to stay in Mounds View, and if approved 87 <br />they would be able to pay their current and back taxes. 88 <br /> 89 <br />Commissioner Hull stated support to consider the amendment with no contingencies since it 90 <br />would result in the hotel being sold, The Mermaid would be in a better financial position, 91 <br />expansion of the hotel would occur to increase the value and tax base, and additional jobs may be 92 <br />created. Currently, it would be a burden on The Mermaid if required to pay one-third of the bond 93 <br />note. 94 <br /> 95 <br />Vice President Stigney stated that expanding the tax base will not matter until the TIF District is 96 <br />paid off. He stated support to shorten the life of the TIF District and pointed out that no 97 <br />information has been provided regarding The Mermaid’s financial position so he is not able to 98 <br />consider that matter. He stated he is not in favor of an “all or nothing” position but would like to 99 <br />know what MoundsVista will offer to accomplish the amendment. 100 <br /> 101 <br />Commissioner Mueller noted that one bondholder has indicated no objection to not paying off 102 <br />the bond and the other bondholder has indicated they want to be bought out. Economic 103 <br />Development Specialist Steinmetz explained that when MoundsVista was considering an earlier 104 <br />amendment, Western Bank indicated a willingness to buy out First Bank. However, noting has 105 <br />been submitted in writing to confirm that remains the case. 106 <br /> 107 <br />President Flaherty stated he had hoped The Mermaid owners would be in attendance to answer 108 <br />questions. However, they did relate to staff that they are unable to pay off one-third of the bonds. 109 <br />He noted that The Mermaid is a struggling business, they are making attempts to gain solvency, 110 <br />and that revenue may be needed to pay property taxes. 111 <br /> 112 <br />President Flaherty asked whether Mounds View assumes any risk by modifying the Agreement. 113 <br />Executive Director Ericson stated it would not. 114 <br /> 115 <br />President Flaherty asked what is the benefit to retire a portion of the District. Executive Director 116 <br />Ericson explained the EDA can selectively decertify parcels but could not decertify any Mermaid 117 <br />parcels while a TIF note is associated with those parcels. The drawback is that the TIF dollars 118 <br />otherwise generated on those parcels would no longer be available for street and utility projects 119 <br />and the City’s budget anticipates those dollars will be available. 120 <br /> 121 <br />Vice President Stigney stated again he would like to know what MoundsVista is willing to do if 122 <br />the EDA considers the requested amendment. He noted when the hotel expansion occurs, they 123 <br />may request it to also be in the TIF District. 124 <br /> 125 <br />President Flaherty commented on the importance of balancing the needs of the City with the 126 <br />needs of the property owner. He stated he would take that stance for any Mounds View business, 127