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Mounds View EDA January 23, 2006 Regular Meeting Page 12 with residents to talk about these issues because Mounds View is still their City and while he 466 does not want to be serving on the Council any more, he still has a distinct and real interest in the 467 City of Mounds View. He stated that should be respected and again encouraged the EDA to sit 468 down together and talk about it, noting he may even be able to educate Vice President Stigney 469 about something as well. 470 471 Vice President Stigney asked President Marty if he can control the meeting from the table or if 472 the audience will continue to control this meeting as Mr. McCarty always likes to do. He noted 473 the purpose of this agenda item is to receive information from Ehlers & Associates. 474 475 President Marty asked if this can be discussed at the January 30, 2006 work session. 476 477 Stacie Kvilvang, Ehlers & Associates, stated that Mr. Backman has covered most of the 478 presentation. She stated one of the questions asked is how do Phases 1 and 2 pan out separately. 479 As alluded to, there is $22.9 million available in TIF and $14.8 million is available and agreed to 480 in Phase 1. Based on the $22.9 million it gives you $8.1 million as available in Phase 2 for 481 qualified costs. She noted with side-by-side comparison that in Phase 2 there are about $24.7 482 million in qualified costs predominantly for structured parking but also for the relocation of the 483 billboards and administrative fees for the Phase 2 contract. So, the $8.1 million will go to those 484 four areas. With the $22.9 million, they are recommending that as far as qualified costs and 485 documentation, they do it all for structured parking. Ms. Kvilvang stated if you look back at the 486 documentation for the $14.8 million it is going toward land acquisition, utilities, site 487 improvements, environmental, and other things. That is a much more lengthy documentation 488 process to go through. She explained that to simplify things in Phase 2 and since the structure 489 parking cost about $24 million, it seems right to document that for the qualified cost of $22.9 490 million for the tax increment. 491 492 Ms. Kvilvang referenced the third page of the report that contains the Phase 1 and 2 analysis 493 done when the project was first look at. The question is what you would net to the EDA once 494 you pay off all the obligations (golf course bond, interfund loan, services, and improvements). 495 At that time, it was about $5.6 million. As you add Phase 2, because of the increase cost they 496 will be paying and contributing to this project, the EDA will net about $6.7 million or a 497 difference of $1.1 million. She explained that difference, as noted in the report, is that Medtronic 498 is paying the $550,000 obligation to relocate one billboard, $400,000 for utility extension, and 499 the available TIF is the City administrative fee of 5%. Since Medtronic is picking up these costs, 500 it means the City has the 5% available to use for other projects and developments within the City. 501 502 Ms. Kvilvang stated another question was the cost to pay off the bonds and interfund loan. 503 Because it was paid off sooner than anticipated, there was an interest savings of about $70,000 504 and there were increased permit fees of about $168,000 for that development. So, that is the $1.1 505 million increased balance. An analysis was completed out to the year 2033. At that time with 506 Phase 1, anticipating a growth of 3% inflation over time, the $5.6 million will grow to $19.5 507