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Mdunds View City Council <br />Regular Meeting <br />UNAFeE r <br />�January 23, 1989 <br />EluflIPage Three ------ <br />Mayor Hanker noted they have worked with the $1.8 <br />million figure from the beginning. She questioned <br />what would happen if the Legislature changes its <br />direction on the tax capacity rate. <br />Mr. Langness explained in going from an assessed <br />value to tax capacity, a formula vas provided, and <br />if it is changed again, he believes a formula would <br />be p1.ov` Jed age-,*,-.. He a`-�^-ed the market valu•? would <br />not change. He also reviewed the threw things <br />which have occurred, with the market value being <br />lowered, the tax capacity rate in Mounds View being <br />composited at 90%, whereas it had been estimated at <br />95%, and the change in the increment. <br />Mayor Hanker stated the issue to be resolved was <br />the policy on the length of the bonds and years of <br />increment, and what it could mean ii the Council did <br />nut do it. <br />Mr. Kasterly explained if that happened, they may <br />want to go back and renegotiate, and could possibly <br />ask for interest on the advance money they have given <br />to the City. <br />Clerk/Administrator Pauley explained this project is <br />essentially proportionally smaller than the Everest <br />project, and they need the additional increment to <br />pay for all the project costs. <br />Councilmember Quick stated his only concern was to <br />stay within the realm of 15 years, and he was fairly <br />comfortL.+le with extending this out an additional 10 <br />months. <br />Councilmember Blanchard stated she had no problem <br />with the extra 10 months, under the circumstances. <br />Councilmember Wuori noted the City and developer <br />have worked hard on the project, with a lot of give <br />and take in both directions, and she felt the extra <br />10 months would be a reasonable adjustment. <br />Mayor Hankner stated she agreed with those comments. <br />Motion/Second: Quick/Wuori to authorize the Mayor and <br />Clerk Administra*.or to enter into a contract for p''i- <br />vate redevelopment by and between the City of Mounds <br />View and SYSCO/Continental Food Services of Minnesota. <br />Inc., with the amendment for a lE year bond and <br />increase the amount the City will reimburse the deve- <br />loper from excess tax increments in an amount not to <br />�., exceed $490,000. <br />4 ayes 0 nays <br />Motion Carried <br />