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Mounds View City Council May 29, 2001 <br />Regular Meeting Page 16 <br /> <br />Economic Development Coordinator Parrish indicated he could approach the developer and <br />property owners but asked Council for direction as to what type of contribution he should be <br />asking for. <br /> <br />Council Member Marty stated he felt Staff should be asking for an equal percentage of the <br />increase from the developer and property owners. <br /> <br />Council Member Quick asked how the City was participating in the Mermaid project. <br /> <br />Economic Development Coordinator Parrish explained that the City had committed to picking up <br />any costs for the pond above the redevelopment grant and Ramsey County’s contribution. <br /> <br />Council Member Quick clarified that the City had made the commitment to pick up the amount <br />above and beyond what there currently is funding for. <br /> <br />Economic Development Coordinator Parrish indicated the City had expressed a willingness to <br />provide TIF financing for the project. <br /> <br />MOTION/SECOND: Thomas/Stigney. To Table this Matter to the Next Council Meeting for <br />More Information. <br /> <br />Ayes – 2 (Thomas/Stigney) Nays 3 (Sonterre/Marty/Quick) Motion failed. <br /> <br />Council Member Marty noted the State is talking about decreasing even further the amounts that <br />are taxable to businesses. <br /> <br />Economic Development Coordinator Parrish indicated there are two items that have an influence <br />on the amount of TIF money. The first is a substantial property tax rate compression across all <br />classes which limits the amount of revenue that can be generated. The second is moving basic <br />school funding to the State level and that portion of property taxes that are captured in TIF could <br />be reduced by 30 to 40 %. He then explained that the City does have outstanding bond <br />obligations and, if the amount coming in were reduced the City would have less to pay with. He <br />also explained that the bonds go out to 2003 and 2004 and noted the City should be able to cover <br />its obligations as there are provisions in the legislation for that. <br /> <br />Council Member Marty questioned how cautious the City needed to be with its TIF funds in light <br />of the proposed change. <br /> <br />Economic Development Coordinator Parrish indicated that any implementation does not take <br />place right away and said the City is looking at one or two years of needing to be cautious. <br /> <br />Council Member Thomas stated that, unless a date is specified, the date would be July 1, 2002. <br /> <br />Council Member Stigney stated he would like to make a comment to Council Member Quick’s <br />comment concerning the commitment to the developer. He then stated that Council had directed