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Mounds View EDA May 24, 2004 Regular Meeting Page 2 46 President Linke questioned whether the Church would be paying the second half taxes. 47 48 Economic Development Coordinator Backman indicated that Michaels Investments has paid the 49 first half taxes and, provided the property is sold, the Church would make the second half tax 50 payment. 51 52 President Linke indicated that the payment due in August is based upon the April tax payment 53 that was made by Michaels so it seems appropriate that the City make the payment to them in 54 August. He then said that once the Church owns the property the reimbursements by the City 55 stop. 56 57 Community Development Director Ericson indicated that it is Michaels Investments’ position 58 that they did not consent to the action that was taken with regard to the Resolution adopted and 59 they need to consent to the termination and, without that consent, there is an active and in force 60 development agreement and the City is liable to make the payments to the developer. If it is not 61 assigned to the Church the City has to make payments and, if transferred to the Church then the 62 City would make payments as long as tax payments are being made. He then said that, once an 63 exemption is filed, then there are no further tax payments made and no payments required by the 64 City. 65 66 Vice President Stigney asked for a staff recommendation. 67 68 Economic Development Coordinator Backman indicated that part of his position has been that he 69 has not wanted to increase the liability of the City and, for that reason, he has not wanted to see 70 giving up the indemnification and feels it should remain. 71 72 Commissioner Gunn asked when the property tax payments would cease. 73 74 Economic Development Coordinator Backman indicated the payments would cease after the 75 Church makes the final payment. 76 77 Economic Development Coordinator Backman indicated the Church has expressed an interest in 78 having its tax-exempt status and would want to do that as quickly as possible. 79 80 John Grano indicated that the Church has entered into an amended purchase agreement with 81 Michaels where they waived contingencies and the Church agreed to reassign the TIF agreement 82 back to them. He then said that the Church would work with the City and the closing is set for 83 June 15, 2004. 84 85 Commissioner Marty commented that it appears that anything that would come in would be 86 forwarded to Michael Investments. 87