Minutes - 2000/08/14 - Laserfiche WebLink

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Mounds View City Council August 14, 2000 Regular Meeting Page 14 . 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. Mayor Coughlin noted this is a pay-as-you go TIF consideration. Bob Hajec, attorney for Mr. Hall, stated this is a pay-as-you go project and secured through real estate taxes so the City is very secure in knowing that what ever is negotiated, the City will get it regardless of bankruptcy. Economic Development Coordinator Parrish stated if the taxes are not paid, it will go to tax forfeiture and when liquidated, the proceeds to back to the taxing jurisdiction. Mayor Coughlin stated that John G. Kinnard would not be involved in this project unless it was a viable business for the foreseeable future. Council Member Marty asked if all of the land parcels have been secured. Mr. Hall stated they have. MOTION/SECOND: ThomasonlMarty. To Waive the Reading and Approve Resolution 5455, a Resolution Approving Economic Development Project and Tax Increment Financing Amendments. Council Member Stigney noted next to Music Off Ten it is a dual business. Mr. Hall stated this is one building with separate walls and they will take the entire building. Council Member Stigney asked about the amendments brought forth on the TIF agreement and asked for an explanation as to why the changes were being made and if it was city-wide or specific for the Mermaid. Economic Development Coordinator Parrish explained that the changes being recommended are . specific to the Mermaid since it is a pay-as-you go project and any expenditures associated to the project need to be reflected. The amendment adds those expenditures to the TIF budget. He reviewed the history of the City's amendments to the TIF policy to combine districts and need to define the Mermaid project.