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M <br />Mounds View City Council <br />Regular Meeting <br />01 <br />C' <br />L7 <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 was provided* and <br />if it is changed again. he believes a formula would <br />be provided again. He added the market value would <br />not change. He also reviewed the three things <br />which have occurred, with the market value being <br />lowered, the tax capacity rate in Mounds View being <br />composit-ed at 908, whereas it had been estimated at <br />95%, and the change in the increment. <br />Mayor Hankner 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 if the Council did <br />not do it. <br />Mr. Casserly 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 />sta} within the realm of 15routand <br />he wasofairly <br />comfortable with extending this <br />l 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 Administrator to enter into a contract for pri- <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 a16 reimburse the deve- <br />year bond and <br />increase the amount the City r <br />ill <br />loper from excess tax increments in an amount not to <br />exceed $490,000. <br />4 ayes 0 nays <br />January 23, 1989 <br />Page Three <br />Motion Carried <br />