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Mounds View EDA August 8, 2005 Regular Meeting Page 8 use as a tool to help compliment SYSCO noting that this would be paid back to the City. He 297 stated that he is going ask Economic Development Coordinator Backman and Director Ericson to 298 clarify how the 50-percent versus the 30-percent would impact the City. 299 300 Economic Development Coordinator Backman confirmed stating that in terms of the $1 million 301 relative to SYSCO that is their threshold from Corporate noting that if it exceeds this amount it is 302 probable that SYSCO would look at locations in the Wisconsin or Iowa areas. He stated that he 303 is concerned about the possibilities of Rice Creek Watershed coming back with additional 304 changes. He stated that they have had some discussions with the State about finding an 305 additional $50,000 to $100,000 so that they do not end up with a gap. He stated that they met 306 last week in an effort to have this covered in the event that the Watershed does come back with 307 additional changes. He stated that in regards to the two-years versus three-years, a document 308 Ehlers just completed has been included in their packet noting that it addresses the state of the 309 health of the districts. He reviewed the district fund balances with the EDA noting that the 310 healthiest district at the end of 2004 was District 3. He noted the revenues coming in stating that 311 the revenues from District 1 outshined everything else. He stated that the district had over 312 $600,000 in revenues coming in noting that all together revenues coming in for the first half of 313 2005 was $861,000, which was offset by expenses of $143,000 with a current balance of 314 $1,060,000. He stated that the second-half payments coming in with another $861,000.00 noting 315 that there would be developer payments and administrative costs. He stated that bottom line the 316 City could have a balance at the end of December of $1,600,000. He stated that in looking at the 317 individual districts the largest district would be District 1 with approximately $900,000; District 318 2, the smallest district, would have approximately $133,000; He noted that District 2 was the 319 district where they decertified 87 parcels this past summer; and District 3 would have $633,000. 320 He stated that on that basis he would agree that a two-year payout would work. 321 322 Vice President Stigney stated that it is interesting to note that this passive open space land that 323 was given to the City for the purpose of keeping it as open space land and now SYSCO wants to 324 develop on it and change it to heavy industrial. He stated that he does not have a big problem 325 with this if they can mitigate this in some way and the City does not lose the wetland area or the 326 purpose of the wetland. He stated that he does have problems with SYSCO asking for TIF 327 assistance. He noted that they also have two billboards in the area adding that he questions 328 whether SYSCO really needs TIF assistance. He stated that if SYSCO wants to build a new 329 wetland they should do it on their own dime. 330 331 Commissioner Flaherty acknowledged that SYSCO has been a good neighbor in Mounds View 332 adding that the City appreciates their efforts. He stated that he understands the $1 million 333 benchmark from Corporate noting that he has had experience with this and this is a big concern. 334 He stated that he understands that this is why they are asking for the TIF assistance. He stated 335 that he is in between on this issue adding that he would be inclined to go with the 50/50 option 336 versus a three-year payout. 337 338