Minutes - 2009/03/23 (2) - Laserfiche WebLink

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Mounds View City Council March 23, 2009 Regular Meeting Page 4 '~ 1 does not allow the TIF to continue. Mr. Hajek stated the plat under consideration will not be 2 submitted to the County for filing unless there is a purchase agreement since it also addresses 3 parking for a hotel and addition. He advised that the local bond holder indicated it wants to 4 continue with the TIF note paying 7.5% and will likely take the entire note since the out of state 5 bank wants to get paid off. The Halls have also personally guaranteed the TIF note. 6 7 Mayor Flaherty closed the public hearing at 7:46 p.m. 9 Council Member Mueller asked if the project meets the Fire Code or the City has seen the hold 1o harmless agreement. Community Development Director Roberts stated the City had not. 11 12 City Attorney Riggs stated the Council considers the resolution; however, the EDA has to make 13 the decision on the TIF bond question. Currently, the TIF agreement contains a due on sale 14 clause. 15 16 Council Member Mueller asked if resolution approval would force the Planning Commission or 17 EDA to accept an expansion of the property. City Attorney Riggs stated it would not. 18 19 Council Member Mueller asked if it is normal to ask to renegotiate bond terms due to the 20 economy. City Attorney Riggs advised this is not a novel request. 21 22 Daniel Hall stated the local bank has already indicated they would keep their TIF bond and be 23 willing to pick up the other TIF since it was at 7.5% interest. Council Member Gunn stated that 24 written correspondence would need to be obtained from the current TIF bondholders. 25 26 City Attorney Riggs stated the City has not reviewed the bond documents and the EDA can 27 consider the TIF issue but the bondholders would also need to be a participant. 28 29 The Council discussed scheduling an EDA meeting on April 6, 2009, to consider the TIF issues. 30 31 Council Member Stigney stated the EDA needs to receive information and recommendations 32 from staff on the options that can be considered at the meeting. City Attorney Riggs explained 33 that the language of the bonds may drive the timing since some require 30 days notification. 34 35 Mr. Hajek asked the Council to approve the plat with conditions so they can work towards 36 meeting those conditions. He also requested direction on what the applicant needs to provide. 37 38 City Attorney Riggs recommended postponement and direction to staff to work with the 39 applicant. He also recommended the TIF and plat issues be considered at the same time. 40 41 Council Member Gunn stated that due to the economic downturn, she thinks the Council should 42 look at these issues. 43 44 Council Member Stigney stated he wants a staff recommendation on what, if any, 45 accommodation the Council should consider at this point. Community Development Director