Resolution 05-EDA209 - Laserfiche WebLink

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Mounds View EDA August 22, 2005 Regular Meeting Page 19 Mr. McCarty stated the proposed draft contract does not go into those details, which is part of the dissatisfaction of many residents in Mounds View. He suggested the contract lays the entire indemnification requirements entirely on the City. Mr. McCarty read a portion of the indemnification language and stated to him, that is a very strong commitment. He stated that it is fine to say "only to the extent of $200,000," but he would like to see evidence where this body can predispose a court order of over $200,000. He stated that it is a commonsense point of view that until the project is finished for the two years or whatever it is, he doubts that a strong case on behalf of an injured party would allow a limit of $200,000 unless Medtronic will pick up the amount over $200,000. SECOND AMENDMENT MOTION: President Marty/. To amend the third WHEREAS to indicate: "...The EDA has also requested the City Planning Commission to review the plans and did not approve a resolution accordingly, and that the Council schedule a public hearing on the plans upon published notice as required bylaw. Amendment motion died due to lack of a second. Vote on motion as amended: Ayes -4 Nay - 1 (Marty) Motion carried. B. Consideration of EDA Resolution OS-EDA-209, a Resolution Authorizing Payment of Pay-As-You-Go Developer Payment to Red Cent Management, LLC for the Building N Project in Mounds View. Economic Development Coordinator Bachman referenced the packet provided to the Commission and stated he does this report every six months for the Finance Director. He noted two payments were approved for the first part of August to the Silver Lake Point and Midwest Ivy projects. He stated that basically there were additional property taxes paid by Bethlehem Baptist Church. He stated there was acquisition of Building N by the EDC at the end of June 2004. They made a payment at the end of the year and applied for property tax exemption that would be effective for 2005. Ramsey County looked at the transactions and determined there was additional lease revenue paid to the new property owner, Bethlehem Baptist Church, by Medtronic Systems and that went on for a number of months. As a result, Ramsey County determined a portion of the building was taxable so payment of $26,667 was made to Ramsey County in May of 2005. Economic Development Coordinator Bachman advised that there was a larger payment last time but that was for the full building. The way the TIF agreement is structured, there is an excluded base so they get $3,066.16. He explained that there will be a follow up payment in the fall of this year for a similar amount.