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Mounds View City Council August 14, 2000 <br />Regular Meeting Page 14 <br /> <br /> <br />Mayor Coughlin noted this is a pay-as-you go TIF consideration. <br /> <br />Bob Hajec, attorney for Mr. Hall, stated this is a pay-as-you go project and secured through real <br />estate taxes so the City is very secure in knowing that what ever is negotiated, the City will get it <br />regardless of bankruptcy. <br /> <br />Economic Development Coordinator Parrish stated if the taxes are not paid, it will go to tax <br />forfeiture and when liquidated, the proceeds to back to the taxing jurisdiction. <br /> <br />Mayor Coughlin stated that John G. Kinnard would not be involved in this project unless it was a <br />viable business for the foreseeable future. <br /> <br />Council Member Marty asked if all of the land parcels have been secured. Mr. Hall stated they <br />have. <br /> <br />MOTION/SECOND: Thomason/Marty. To Waive the Reading and Approve Resolution 5455, a <br />Resolution Approving Economic Development Project and Tax Increment Financing <br />Amendments. <br /> <br />Council Member Stigney noted next to Music Off Ten it is a dual business. Mr. Hall stated this <br />is one building with separate walls and they will take the entire building. <br /> <br />Council Member Stigney asked about the amendments brought forth on the TIF agreement and <br />asked for an explanation as to why the changes were being made and if it was city-wide or <br />specific for the Mermaid. <br /> <br />Economic Development Coordinator Parrish explained that the changes being recommended are <br />specific to the Mermaid since it is a pay-as-you go project and any expenditures associated to the <br />project need to be reflected. The amendment adds those expenditures to the TIF budget. He <br />reviewed the history of the City’s amendments to the TIF policy to combine districts and need to <br />define the Mermaid project. <br /> <br />Council Member Stigney noted language indicating it refers to the project. Economic <br />Development Coordinator Parrish explained it refers to the area where expenditures can be made <br />which is the boundaries of the City. He stated the added additional expenditures are anticipated <br />to be project and site specific. As the TIF district is set up, they are fully poolable and one in the <br />same for reporting purposes. <br /> <br />Council Member Stigney noted Page 6 indicating the estimated cost of the redevelopment project <br />is $1.5 million but $2.5 million was mentioned. Economic Development Coordinator Parrish <br />explained this allows the City to be more flexibility in dealing with offices of the State Auditor <br />which states TIF funds must be spent in accordance with the TIF budget so this would provide <br />the City with maximum flexibility should the end documentation for the project indicate $1.8 <br />million. With the recommended language, a TIF amendment to the district is not needed. He <br />explained the budget does not necessarily reflect the amount of assistance to be provided.