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Mounds View EDA August 22, 2005 Regular Meeting Page 19 advised that the City has taken steps to shift liability and there is also insurance to cover certain 750 percentages. He offered to review the contract terms with Mr. McCarty and the EDA, if desired. 751 752 Mr. McCarty stated the proposed draft contract does not go into those details, which is part of the 753 dissatisfaction of many residents in Mounds View. He suggested the contract lays the entire 754 indemnification requirements entirely on the City. Mr. McCarty read a portion of the 755 indemnification language and stated to him, that is a very strong commitment. He stated that it is 756 fine to say “only to the extent of $200,000,” but he would like to see evidence where this body 757 can predispose a court order of over $200,000. He stated that it is a commonsense point of view 758 that until the project is finished for the two years or whatever it is, he doubts that a strong case on 759 behalf of an injured party would allow a limit of $200,000 unless Medtronic will pick up the 760 amount over $200,000. 761 762 SECOND AMENDMENT MOTION: President Marty/. To amend the third WHEREAS to 763 indicate: “…The EDA has also requested the City Planning Commission to review the plans and 764 did not approve a resolution accordingly, and that the Council schedule a public hearing on the 765 plans upon published notice as required by law. 766 767 Amendment motion died due to lack of a second. 768 769 Vote on motion as amended: 770 771 Ayes –4 Nay – 1 (Marty) Motion carried. 772 773 B. Consideration of EDA Resolution 05-EDA-209, a Resolution Authorizing 774 Payment of Pay-As-You-Go Developer Payment to Red Cent Management, 775 LLC for the Building N Project in Mounds View. 776 777 Economic Development Coordinator Bachman referenced the packet provided to the 778 Commission and stated he does this report every six months for the Finance Director. He noted 779 two payments were approved for the first part of August to the Silver Lake Point and Midwest 780 Ivy projects. He stated that basically there were additional property taxes paid by Bethlehem 781 Baptist Church. He stated there was acquisition of Building N by the EDC at the end of June 782 2004. They made a payment at the end of the year and applied for property tax exemption that 783 would be effective for 2005. Ramsey County looked at the transactions and determined there 784 was additional lease revenue paid to the new property owner, Bethlehem Baptist Church, by 785 Medtronic Systems and that went on for a number of months. As a result, Ramsey County 786 determined a portion of the building was taxable so payment of $26,667 was made to Ramsey 787 County in May of 2005. 788 789 Economic Development Coordinator Bachman advised that there was a larger payment last time 790 but that was for the full building. The way the TIF agreement is structured, there is an excluded 791