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Mounds View EDA August 22, 2005 Regular Meeting Page 13 Commissioner Flaherty asked for an explanation of the indication on Page 2-13, Subsection 2-21, 501 Excess Increments, that indicates: “The EDA or City must spend or return the excess increments 502 under paragraph ( c) within nine months after the end of the year.” 503 504 Economic Development Coordinator Bachman explained that the EDA cannot hoard TIF dollars 505 and if increments are being generated by TIF Districts, then projects must utilize those dollars. If 506 there are no obligations, Ramsey County could say they believe it is excessive and needs to be 507 redistributed. 508 509 Commissioner Flaherty asked if that is based on the desertification of the District. 510 511 Economic Development Coordinator Bachman explained that TIF Districts are created for the 512 purpose of economic development. If the TIF dollars are not used they cannot be funneled to 513 general fund dollars. The TIF dollars must either be used or the District decertified. 514 515 Commissioner Flaherty drew the EDA’s attention to Appendix A, Introduction, indicating: “The 516 current site has acreage that is not buildable and wetland relocation will be required.” He asked 517 if that means this current contract is selling about 20 acres of swampland and the actual buildable 518 land of the 72.2 acres is 52.2 acres. 519 520 Economic Development Coordinator Bachman stated that is correct. 521 522 Commissioner Flaherty reviewed the “but/for” qualifications detailed in Appendix F indicating: 523 “While property could be sold to another developer for some other use, these scenarios are not 524 feasible in the market due to various constraints mentioned above along with others. First 525 industrial uses could not meet the market valuation due to the fact that they are single story in 526 nature (can’t get to the same density as office), lack the amenities in design and construction and 527 are traditionally valued at ½ the market value of commercial and office uses. Second, 528 commercial retail uses have the same restraint in that the market does not allow for vertical 529 commercial/retail development.” He asked if the Medtronic development is going up (vertical) 530 so it creates higher density and higher value on the land. 531 532 Economic Development Coordinator Bachman answered in the affirmative. 533 534 Commissioner Flaherty noted that by those two statements, the City is getting better value than 535 someone else coming in. 536 537 Economic Development Coordinator Bachman stated that is correct. 538 539 President Marty noted there are two resolutions for the EDA’s consideration. 540 541