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Mounds View EDA August 22, 2005 Regular Meeting Page 11 418 Mr. Inman stated it is indicating that they have up to ten years to spend the qualified costs that 419 Mounds View will reimburse them for. If they only do Phase 1 and never do Phases 2 and 3 420 within the ten years, then everything goes away. 421 422 President Marty referenced Appendix A-2, the project description under transportation 423 indicating: “The Bridges AUAR, authorized by the City, reviewed all transportation issues 424 related to the proposed development of the site. RLK-Kuusisto of Minnetonka prepared the 425 AUAR documents.” President Marty stated he does not feel it is correct because the AUAR 426 considered the freeways and trunk roads but the City street traffic was not taken into 427 consideration. 428 429 President Marty referenced the Exhibit B chart and asked for larger-sized print on future reports 430 so it is easier to read. 431 432 President Marty questioned Appendix F, the but/for for qualifications. 433 434 Mr. Inman gave an example of someone buying a car that is worth $10,000 but comes to $17,000 435 when you add principal and interest. You wouldn’t say it’s a $17,000 car, you’d say it is a 436 $10,000 car. He stated the same is done with the stream of TIF payments. The chart shows it is 437 worth $15,700,000 in today’s dollars. This formula is a statutory formula that is required to be 438 performed. The theory is that if the number at the bottom was rather small in comparison with 439 the other two, it would show that you are not getting much market value. The larger number at 440 the bottom the more the statute indicates you will be getting in market value than if you had not 441 done this project. Mr. Inman explained that is the theory. 442 443 President Marty stated this is close to what he had arrived at from the $32,700,000 figure, which 444 was $15,752,681 so this is only off by about $50,000. 445 446 President Marty referenced the second paragraph of Appendix F that includes a sentence that 447 indicates: “In addition, site constraints require the developer to acquire adjacent land to preserve 448 existing wetlands and green space which adds additional costs.” He stated the land being 449 acquired is developed and asked about this comment. 450 451 Economic Development Coordinator Bachman stated it comes into play if they don’t acquire the 452 adjacent properties, the two businesses, and move them in Blaine. They would have to have a 453 greater proportion in parking, wetland #2 may be lost, and it may be more difficult to get wetland 454 mitigation to the east. This also allows for better placement of the park facility. 455 456 President Marty read a sentence in Appendix F2 that indicated: “Therefore, the City concludes 457 as follows: a. The City’s estimate of the amount by which the market value of the entire district 458