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Mounds View EDA August 22, 2005 <br />Regular Meeting Page 6 <br /> <br />almost $1 million higher than that and does not include almost $17 million in interest being paid 211 <br />to Medtronic. 212 <br /> 213 <br />Mr. Inman explained that this is a budget and the amount they get will be limited by the contract. 214 <br />That limit is $14.8 million. He explained that this is an estimate and the EDA can ago lower but 215 <br />cannot go higher so it is generally estimated on the higher side. 216 <br /> 217 <br />City Attorney Riggs concurred that there is a cap of $14.8 million. 218 <br /> 219 <br />Mr. Inman stated the EDA is legally obligated to $14.8 million and the interest would be on top 220 <br />of that. 221 <br /> 222 <br />President Marty noted there will be almost $17 million of interest on top of the $14.8 million 223 <br />amount. 224 <br /> 225 <br />Economic Development Coordinator Bachman noted that administrative costs show 10% but the 226 <br />cap is at 5% so that would be a difference of about $1 million less in expenditures. He restated 227 <br />this is a budget estimate and if there are additional increments because of larger valuations, this 228 <br />could get paid off early and back on the tax rolls in 19.5 years. In that case, less interest would 229 <br />be paid. 230 <br /> 231 <br />Mr. Inman stated they tend to recommend to give the broadest range of possibilities. That is why 232 <br />Staff recommended the parcel be included and why the budget is somewhat higher. He noted 233 <br />that interest would have to be paid in any case no matter how it is financed, even if bonds are 234 <br />issued. The interest is to finance the cost of the improvements. 235 <br /> 236 <br />President Marty noted the administrative costs would be about $1 million less so the full 237 <br />$2,100,000 would go to Blaine for the land acquisition. Mr. Inman stated that would be correct if 238 <br />it got that far down in the “pecking order.” 239 <br /> 240 <br />President Marry read the Interfund Loan Requirement indicating: “If the City wants to pay for 241 <br />administrative or other expenditures from a tax increment fund, it is recommended that a 242 <br />resolution authorizing a loan from another fund be passed prior to the issuance of the check.” He 243 <br />asked if there are any plans for interfund loans. 244 <br /> 245 <br />Mr. Inman stated it is on the budget page. 246 <br /> 247 <br />President Marty asked where those funds would come from. 248 <br /> 249 <br />Mr. Inman stated they are defined to give flexibility and if the EDA decided to do that, Staff will 250 <br />bring back recommendations and resolutions for approval that identifies where the funds would 251