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Mounds View EDA August 8, 2005 Regular Meeting Page 7 255 President Marty referenced Page 8, Section 3.3, Business Subsidies Act, Item 2, states that ‘if the 256 goals are met in part the developer would pay a portion of the business subsidy, plus interest, 257 determined by multiplying the business subsidy by a fraction, the numerator, of which is the 258 number of jobs of the goals which are not created at the wage level set forth above and the 259 denominator, which is 40’ and clarified that if they do not create the jobs they state then they 260 would pay the City interest back. 261 262 Economic Development Coordinator Backman stated that they would have to re-pay a portion of 263 the business subsidy plus interest. He explained that it holds their feet to the fire in the sense that 264 the City wants to have job creation and that the City has expectations about the wage levels. 265 266 Commissioner Flaherty stated that when this first came up at the EDA Commission hearing he 267 was not very happy because it came on the heels of everything else when the EDA was talking 268 TIF District as far as Medtronic was concerned. He explained that they had decided as a 269 Commission that they wanted to review the TIF Districts and determine what exactly the TIF 270 Districts are earning and exactly how much the City has in districts. He stated that this is a bit 271 quick for him noting this came back up again before they have had an opportunity to review 272 where the districts are, where they are going, where they want to decertify and what funds the 273 City has with the increment monies. He stated that he is still of this mindset noting that it is 274 quick for him coming on the heels of the Medtronic deal. 275 276 Commissioner Thomas stated that she is stilling going back and forth on this noting that she has 277 expressed concerns in the past with regards to spreading the payments out, when knowing what 278 they want to do and understanding still the cash flow issues, what they want to do with the funds. 279 She stated that she tends to agree with Vice President Stigney. She noted that this is a difficult 280 situation and suggested, as a compromise, a 50-percent split taking it down to a two-year spread 281 She stated that it is her understanding that they have the cash flow, at that point, in that district, 282 without taking it too far out. She stated that this would cut it down to a reasonable planning level 283 for the City without dragging it out and allows the City to cash flow some items to get the project 284 going. She noted that they couldn’t wait until next year adding that this is where she believes the 285 City is in trying to manage a compromise. 286 287 President Marty stated that he spoke with Phil Seipp, President/CEO of SYSCO, earlier this 288 afternoon noting that Mr. Sipes explained that this is time sensitive and if this doesn’t go 289 through, their cap is approximately $1 million and in reviewing the spreadsheets the amounts 290 were over $300,000 and the criteria that SYSCO uses is that if they can keep it under $1 million 291 they would get the funds from their corporate headquarters, if not SYSCO might be looking to 292 invest in their money in other areas, possibly outside of the State of Minnesota. He stated that he 293 sees SYSCO as being a very good neighbor and strong business here in Mounds View and it is 294 not like they are asking for millions of dollars. He stated that they pay their taxes and they have 295 been a growing business and sees this as a positive way that the EDA Authority and City could 296