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Mounds View EDA May 13, 2019 Regular Meeting Page 3 1 Mr. Smith reported he met with Steve Markuson from Twin Cities Gateway and explained Mr. 2 Markuson fully supported the direction this project was headed. 3 4 President Mueller thanked the representatives from CIG for the thorough presentation. 5 6 B. Resolution 19-EDA-322 Approving LHB to Conduct a Redevelopment TIF 7 Analysis on the Skyline Motel Site and Surrounding Area. 8 9 Mike Fischer, LHB, provided the EDA with a presentation on the Redevelopment and Renewal 10 TIF Districts. He explained these types of TIF Districts could be used to redevelop substandard 11 or obsolete buildings. He reported a Redevelopment TIF District could run for 26 years and 12 noted more than 50% of the buildings must be substandard. He discussed the Coverage Test and 13 reported 70% of the district must be occupied by buildings, streets, utilities or paved parking lots. 14 He reported the toughest test would be for the Building Code Qualification and Condition of 15 Buildings Test. He explained a building cannot be considered structurally substandard if its code 16 deficiencies were not at least 15% of the replacement cost of the building. He stated based on his 17 drive-by of the proposed Skyline Motel TIF District this site would not have a coverage issue. 18 19 Stacie Kvilvang, Ehlers & Associates, discussed how her company assists the City with public 20 financing for bonds along with reviewing the finances for potential TIF projects. She 21 commended the City for purchasing the Skyline Motel property as she understood it was the 22 Council’s goal to redevelop this site. She explained the developer was not requesting any 23 assistance but noted the EDA could still create a TIF district to use the dollars generated to pay 24 the City back for the acquisition of this land. She reported this would be done through an 25 interfund loan. 26 27 President Mueller questioned if the “but for” test would be completed for this project. Ms. 28 Kvilvang reported this would be conducted and commented further on the “but for” test 29 requirements. 30 31 President Mueller asked for comments or questions from the EDA. There were no comments or 32 questions from the EDA. 33 34 Assistant City Administrator Beeman requested the EDA consider approving a Resolution that 35 would allow LHB to conduct a Redevelopment TIF Analysis on the Skyline Motel site and 36 surrounding area. 37 38 President Mueller discussed the costs that would be associated with the proposed LHB contract. 39 40 Commissioner Meehlhause asked how Ehlers & LHB would be working together on this project. 41 Assistant City Administrator Beeman explained the City could not create a TIF District unless 42