08-28-2000 CC - Laserfiche WebLink

Home Browse Search

Mounds View City Council August 14, 2000 Regular Meeting Page 13 C. Public Hearing, Discussion and Consideration of Resolution 5455 Approving Economic Development Project and Tax Increment Financing Amendments. Mayor Coughlin opened the Public Hearing at 8:14 p.m. Economic Development Coordinator Parrish explained that as indicated at the Council work session, modification of the Mounds View Economic Development Project and Tax Increment Financing Plans establishes the necessary framework to provide tax increment financing assistance for the Mermaid’s proposed hotel and banquet center expansion. He stated that the anticipated level of assistance being negotiated with the developer is 90% of the available increment over a period of 10.5 years or duration of the TIF district not to exceed $2 million to $2.5 million. He stated that issue will be considered at a future meeting. Economic Development Coordinator Parrish noted the letter outlining the “but for” requirements of the legislation and need to articulate those findings. He stated those findings will be quantified and articulated in terms of sources and uses of funds compared to anticipated levels of income to define the rate of return at an upcoming meeting. He stated staff is in the process of negotiating this agreement and requested input on the possibility of scheduling a work session during the third week of September to consider this and the Mermaid development plans in conjunction with their PUD application so the developer could place footings prior to frost conditions. There was no other public input. Mayor Coughlin closed the Public Hearing at 8:18 p.m. Dan Hall, representing the Mermaid, stated his family has had this property for 27 years and this idea for a banquet center started with him and his father about five years ago. He reviewed how this concept developed and their decision to approach City staff about the availability of assistance to put this type of project together to help with property acquisition and demolition. Mr. Hall stated there has been a lot of progress and cooperation realized with the City Council and City Staff. He stated they have incurred obstacles including the finding that the soils will not support the type of facility they would like to build. He reported that the location of the bowling alley and banquet center is where Rice Creek used to be and the soils do not support the buildings. Mr. Hall noted the estimated costs for different construction concepts to address the poor soil conditions and stated they hope to be able to do a soil correction, noting these costs do not include technical or engineering work. He explained the cost of this project is skyrocketing due to increased land costs, construction costs, soil corrections, and without TIF, this project will not move forward. Mr. Hall commented on this family’s financial commitment into this project already and stated it is important for them to proceed with the project. He stated the AmericInn franchise and hotel management is preparing comprehensive informational packages. Council Member Stigney asked about future projections and guarantees for the City should there be a bankruptcy.