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Mounds View EDA May 10, 2004 <br />Regular Meeting Page 2 <br /> <br />Coordinator Backman indicated that Staff recommends that the termination be contingent upon 46 <br />the sale actually occurring. He then indicated that Staff recommends that Section 7.2 of the 47 <br />agreement that already exists and was already agreed to remain and it is the indemnification for 48 <br />the City that is to survive termination. 49 <br /> 50 <br />Coordinator Backman indicated that the issue of whether or not the City is to make the developer 51 <br />payment in August 2004 arose today. He then said that he consulted the City’s TIF attorney and 52 <br />they are of the opinion that, if the building is sold and the note terminated, the City is not 53 <br />obligated to make the payment. 54 <br /> 55 <br />MOTION/SECOND: Gunn/Quick. To Approve Resolution 04-EDA-185 Approving the 56 <br />Termination of the Development Agreement between the Mounds View EDA And Michel 57 <br />Investments Entered Into April 26, 1999 and Cancellation of the Tax Increment Revenue Note 58 <br />for the Building N Project. 59 <br /> 60 <br />Vice President Stigney indicated that he does not agree with what is happening and will not vote 61 <br />for this. 62 <br /> 63 <br />Vice President Stigney indicated that he is concerned about the position this puts the City in. 64 <br /> 65 <br />Vice President Stigney asked whether wording could be added to require that the sale close prior 66 <br />to August 1, 2004. 67 <br /> 68 <br />Coordinator Backman indicated that if the closing occurs after the August 1, 2004 date there is an 69 <br />argument that could be made that the City is to make the payment. 70 <br /> 71 <br />City Administrator Ulrich indicated that, as long as this does not close, the TIF agreement 72 <br />remains in effect and the City makes the payments. 73 <br /> 74 <br />Commissioner Marty asked what the amount of the payment is. 75 <br /> 76 <br />Coordinator Backman indicated the payment amount is approximately $24,000. 77 <br /> 78 <br />John Ryden from CB Ellis addressed the Authority and indicated that their request had been to be 79 <br />completely released from the agreement. 80 <br /> 81 <br />Coordinator Backman indicated that there is already an indemnification clause in the document 82 <br />that survives termination and that was previously agreed to. He then said that it applies only to 83 <br />the time during which the building is owned by Michael Investments. 84 <br /> 85 <br />Commissioner Quick asked whether the motion included the suggested amendments. 86 <br /> 87