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Mounds View City Council January 23,, 1989 <br />Regular Meeting Page Three' <br />-------------------------------------------------------------------------- <br />• Mayor Hanker noted they have worked with the $1.8 <br />million figure from the beginning. She questioned <br />what would happen if the Legislature changes its <br />direction on the tax capacity rate. <br />Mr. Langness explained in going from an assessed <br />value to tax capacity, a formula was provided, and <br />if it is changed again, he believes a formula would <br />be provided again. He added the market value would <br />not change. He also reviewed the three things <br />which have occurred, with the market value being <br />lowered, the tax capacity rate in Mounds View being <br />composited at 90~, whereas it had been estimated at <br />95~, and the change in the increment. <br />Mayor Hankner stated the issue to be resolved was <br />the policy on the length of the bonds and years of <br />increment, and what it could mean if the Council did <br />not do it. <br />Mr. Casserly explained if that happened, they may <br />want to go back and renegotiate, and could possibly <br />ask for interest on the advance money they have given <br />to the City. <br />Clerk/Administrator Pauley explained this project is <br />• essentially proportionally smaller than the Everest <br />project, and they need the additional increment to <br />pay for all the project costs. <br />Councilmember Quick stated his only concern was to <br />stay within the realm of 15 years, and he was fairly <br />comfortable with extending this out an additional 10 <br />months. <br />Councilmember Blanchard stated she had no problem <br />with the extra 10 months, under the circumstances. <br />Councilmember Wuori noted the City and developer <br />have worked hard on the project, with a lot of give <br />and take in both directions, and she felt the extra <br />10 months would be a reasonable adjustment. <br />Mayor Hankner stated she agreed with those comments. <br />Motion/Second: Quick/Wuori to authorize the Mayor and <br />Clerk Administrator to enter into a contract for pri- <br />vate redevelopment by and between the City of Mounds <br />View and SYSCO/Continental Food Services of Minnesota, <br />Inc., with the amendment for a 16 year bond and <br />increase the amount the City will reimburse the deve- <br />• loper from excess tax increments in an amount not to <br />exceed $490,000. <br />4 ayes 0 nays Motion Carried <br />