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Mounds View EDA April 13, 2009 Regular Meeting Page 5 portion of the TIF bond is required, even 1/10th, it would come from operating revenue. Mr. Hall 170 stated it would come from money needed to pay delinquent and current taxes. He pointed out 171 that if taxes are not paid, he will not be able to obtain a liquor license. 172 173 Commissioner Hull stated that 1/6th would be $68,000 and if Mounds View needs it that bad, it 174 should close its doors. He stated he has no problem with the amendment approval without 175 contingencies because The Mermaid is an excellent business and hires many people including 176 residents. 177 178 MOTION/SECOND: Gunn/Hull. To Waive the Reading and Approve Resolution 09-EDA-252, 179 Approving First Amendment to Development Assistance Agreement between Mounds View 180 Economic Development Authority and MoundsVista, Inc. 181 182 Commissioner Mueller asked when the closing date would be if this is approved without 183 requirement for advance bond payment. Mr. Hall stated the scheduled closing is April 30, 2009, 184 and the buyer owns seven other hotels in the Twin Cities area. The appraisal will be completed 185 this Wednesday. 186 187 Commissioner Mueller asked if property taxes will be paid by May 15 if the sale does not go 188 through. Mr. Hall stated taxes would not be paid. 189 190 President Flaherty stated this business is attempting to reorganize to be more viable and payment 191 of taxes is an important consideration. He stated he would consider the same action for any 192 business in Mounds View that came before the Council. 193 194 Vice President Stigney noted that Mr. Hall has indicated that he cannot pay 10% or the deal 195 would fall through. Mr. Hall stated he did not make that implication. 196 197 Vice President Stigney stated the motion establishes a precedence by granting a request of a 198 business and its offering absolutely nothing to the City. He noted the tax payers would gain 199 benefit if the TIF District is shortened. Mr. Hall suggested that would be a windfall for the 200 taxpayers since the money would come from his pocket. Vice President Stigney stated if they 201 cannot support 10% then he questions whether the business is even viable. 202 203 President Flaherty stated he understands it would not stop the project from moving forward but 204 could impact The Mermaid’s operation, future hiring, and cause a possible reduction in staff. 205 206 AMENDMENT MOTION/SECOND: Stigney/Mueller (for discussion purposes). To Waive the 207 Reading and Approve Resolution 09-EDA-252, Approving First Amendment to Development 208 Assistance Agreement between Mounds View Economic Development Authority and 209 MoundsVista, Inc., as amended to require a minimum 10% payment of the one-third TIF bond, 210 which gives the taxpayers some benefit. 211