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Mounds View EDA August 22, 2005 Regular Meeting Page 10 President Marty asked what the County’s administrative expenses would be and where payment 376 would come from. 377 378 Mr. Inman stated each County deals with TIF differently and some have a computer program or 379 Staff time. Each year the County will provide the City with a list of expenses and they will 380 deduct that cost from the TIF prior to giving it to the City. He explained that it varies from 381 County to County and some bill for their expenses while others deduct the costs. 382 383 Ms. Eldridge advised that Ramsey County goes through substantial analysis of the City’s TIF 384 Districts. Mound View is now getting billed for District Nos. 1, 2, and 3 every year. The 385 deduction is made prior to settlement and goes to the State Auditor for their administrative fees. 386 Ramsey County will send a bill that will be split into the amount and divided by all Districts in 387 the County so it is a flat fee. The other side of it is by parcel. The more parcels in the District, 388 the more maintenance at the County level that is involved. She estimated it will be less than 389 District Nos. 1 and 2. 390 391 President Marty stated those dedications come from the City’s portion. Ms. Eldridge explained 392 they come from the TIF increment as they do with the other Districts. 393 394 Director Ericson clarified that it comes from the increment but does not reduce the City’s 395 percent. The City still retains 5% of the increment collected. 396 397 President Marty referenced Page 2-13, second sentence of the third paragraph, that indicates: 398 “The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as 399 specified in a developer’s agreement to reimburse the costs of land acquisition, public 400 improvements, demolition and relocation, site preparation, and administration.” 401 402 President Marty asked if these are the payments that Medtronic has. Mr. Inman stated that is 403 correct and they are further limited by the agreement. 404 405 President Marty referenced Page 2-15, Subsection 2-27, Other Limitations on the Use of Tax 406 Increment, that indicates: “…Increment may only be spent on one or more of the following 407 costs, improvements, or activities: …including structured parking; administrative expenses; 408 wetland mitigation; soil correction …” 409 410 President Marty asked if these are eligible corrections and if the Blaine property needs soil 411 corrections, would it come from here. Mr. Inman stated the agreement does not say that. 412 413 President Marty referenced Page 2-15, item 3, that indicated: “Five Year Limitation on 414 Commitment of Tax Increments. Pursuant to the Special Legislation, Subd. 2(c), the five year 415 rule under M.S., Section 469.1763. Subd. 3, has been extended to a ten year period. He asked if 416 they will have up to 10 years from 2007 to create Phases 2 and 3. 417