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Mounds View City Council August 8, 2005 <br />Regular Meeting Page 12 <br />• Economic Development Coordinator Backman stated that he would like to point out one item <br />relative to the three-acres and explained that they are talking about three-acres out of the 46-acres <br />donated to the City. He stated that a good portion of the land added is not necessarily currently <br />wetlands and reviewed the locations with Council. He stated that there are wetlands located in <br />the area adding that not all three acres are in the wetland area. <br />Council Member Stigney clarified that he had said that SYSCO wished to build into the wetland <br />acres by 3-acres and obviously they wouldn't be asking for money to mitigate if it wasn't a <br />wetland area. He stated that if it were open top land they wouldn't need the money to relocate <br />the pond and everything else out there. He stated that is the reason why he does not support this. <br />Mayor Many explained that one of the reasons that SYSCO is asking for this assistance is <br />because their corporate offices capped their expenses at $1 million dollars for expansion and <br />development projects like this and the expenses for this expansion would be slightly over the <br />capped amount. He stated that he spoke with President Phil Seipp earlier today and he explained <br />that SYSCO's money could very possibly go to another facility located in another State if this is <br />not approved. He expressed concerns stating that SYSCO has been a good neighbor to the City <br />of Mounds View and they have added business, added employees and with this expansion they <br />would have the potential to add another 100 employees. He stated that without this assistance <br />from the City this development, expansion and the new jobs would very likely not be coming to <br />the City of Mounds View. He also noted that this would be paid back to the City over atwo-year <br />. period and reviewed. <br />Council Member Stigney clarified that if SYSCO wants to cut off the expense at $1 million that <br />is a corporate decision on their part and is their decision to make. He stated that if they wish not <br />to expand here on that basis that is their decision to make and his decision is to determine <br />whether to allow them to come in and expand in a wetland and ask for TIF money to do it. He <br />noted that the residents are picking up $61,000 a year in fiscal disparities in order to keep that <br />TIF District open. <br />Mayor Marty clarifed that this would be paid back within two years noting that SYSCO has been <br />a good neighbor and business. He explained that the reason they are expanding is to add jobs. <br />MOTION/SECOND. Thomas/Flaherty. To Approve Resolution 6593 with the two amendments <br />and to Approve the Development Agreement to provide $125,000.00 in Tax Increment Financing <br />(TIF) Assistance to SYSCO Food Services of Minnesota to facilitate the expansion of the <br />business located at 2400 County Road J in Mounds View. <br />Ayes-4 Nays-1 (Stigney) Motion carried. <br />B. Review Proposed 2006 City Budget/Preliminary Levy. <br />• City Administrator Ulrich referenced the enclosed copy of the preliminary budget, which the <br />recommended action for this evening is to postpone for discussion at the Special Work Session <br />