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Mounds View EDA August 22, 2005 Regular Meeting Page 7 come from. He explained this section merely memorializes the fact that the EDA may do that. 252 However, this is a method of finance and would need to be approved by the EDA by resolution. 253 254 President Marty noted if the State compresses business taxes, as they have in the past, and the 255 EDA gets into a bind, the EDA could transfer from the TIF pool in order to meet obligations. 256 257 Mr. Inman stated that would not be the case for this situation because the contract limits the 258 developer to whatever taxes they generate. If there is tax compression, they just get whatever 259 they pay. The EDA would not be required or obligated to find funds to pay them. 260 261 President Marty stated he understands this being included as a “safe gap” but he does not 262 understand why interfund loans and transfers are included as $5 million. 263 264 Mr. Inman explained that none can take place unless approved in the future and it is only 265 included as an option. 266 267 Director Ericson explained that the Highway 10 plan is adopted and if financing comes up short 268 and there are excess dollars in TIF District No. 5, then the City could authorize a loan to borrow 269 from that District. This resolution would allow that ability but it does not mean the City would 270 have to approve an interfund loan. It would have to be approved by a resolution adoption. 271 272 President Marty stated his understanding this TIF District is a pay-as-you -go so it will not be 273 creating a pool. 274 275 Mr. Inman stated it does not create a pool but experience is that it will be paid off early so in a 276 certain period of time, the EDA will have to decide whether to shut down the district and put it 277 back on tax rolls. Or, it could be used for a different project such as a highway project 278 mentioned by Director Ericson. 279 280 Commissioner Thomas stated it is the same as TIF District No. 3; the EDA can determine if it 281 wants to end it early or use the funds for other projects. 282 283 Economic Development Coordinator Bachman stated another option is that utilities could be paid 284 from administration. 285 286 President Marty referred to the last paragraph of Page 2-2, Subsection 2-5 indicating: “The EDA 287 or City may acquire any parcel within the District including interior and adjacent street rights-of-288 way…The EDA or City may acquire property by gift, dedication, condemnation or direct 289 purchase from willing sellers in order to achieve the objectives of this TIF Plan.” He stated he 290 personally does not like condemnation and including it makes him uncomfortable. 291 292