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Mounds View EDA April 13, 2009 Regular Meeting Page 4 not just The Mermaid. 128 129 Commissioner Gunn stated she had asked for written confirmation from the bond holders in 130 addition to other information. She stated she is willing to table consideration until that 131 confirmation is received. 132 133 Commissioner Mueller stated she would like to hear from the business owners before the EDA 134 makes this decision. 135 136 Commissioner Mueller noted there may be timing issues because license renewals are coming 137 due for The Mermaid and one condition for renewal is being current on tax payments. 138 139 President Flaherty noted The Mermaid owners had just arrived and asked Mr. Hall to address the 140 questions raised why MoundsVista was not able to pay off one-third of the bond note. 141 142 Dan Hall, 2200 Highway 10 and owner of The Mermaid, explained that they do not have funds 143 available to pay the note early. He stated they have placed personal guarantees so the City will 144 not be out any money and bringing in another owner for the hotel assures there will be no 145 shortfall in taxes so the TIF payments can be made. Mr. Hall stated this is a calculated move to 146 solidify their business and there is no reason to accelerate the note payments since their request is 147 miniscule in the broad scope of things and does not place a burden on Mounds View. 148 149 Commissioner Mueller asked how many people MoundsVista presently employs. Mr. Hall stated 150 they average 150 employees with 125 during summer months and up to 175 during the holiday 151 season. They have 65-70 full-time employees. The new prospective owner wants to construct 152 an addition to the hotel, which would increase property taxes paid. 153 154 Commissioner Mueller asked about the property value on which the TIF note was originated. 155 Mr. Hall stated it was $8.4 million to $8.6 million and their property taxes just increased by 10% 156 so he does not believe the property value will go down if this passes. 157 158 Vice President Stigney asked what they would be willing to do. Mr. Hall stated he cannot afford 159 to pay on the note, his family still personally guarantees payment of the TIF, and Mounds View 160 would not have any additional burden. 161 162 Vice President Stigney asked if The Mermaid will go bankrupt unless no TIF payment is made. 163 Mr. Hall stated he does not want to use the word “bankruptcy” but he is out of money and this 164 sale will put money back into the coffers of The Mermaid. He advised they have not paid 165 property tax from last fall because they do not have the money. Vice President Stigney asked if 166 they can submit supportive documentation of The Mermaid financials to show that is the case. 167 168 President Flaherty stated The Mermaid is trying to make a sale to gain solvency and if any 169