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MINUTES FOR THE EDA MEETING OF SEPTEMBER 15, 2008 <br />EDA Vice President Phil Klein called the meeting to order at 8:30 am. <br />PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger, Phil Klein, Brian Thistle <br />and Fran Miron <br />ABSENT: None <br />CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development <br />Director Bryan Bear, and Associate Planner Rachel Simone <br />APPROVAL OF MINUTES FOR THE EDA MEETING OF AUGUST 15, 2008 <br />Granger made motion, Denaway seconded, to approve the minutes for the EDA meeting of August 18, <br />2008. <br />All aye. Motion carried. <br />SERTINO'S CAFE <br />Staff has invited Mickey Michlitch, owner of Sertinos Cafe, to come to the EDA meeting to <br />talk about his new business in town. Mickey talked about how he decided to come to the City <br />of Hugo, after he had already picked a location in Woodbury. He stated that signage is very <br />important for his business and wanted to include more signage. He also stated that the <br />SAC/WAC fees for the City are a bit higher than other cities he has worked with. Sertinos <br />serves breakfast in the morning starting a 6 am. The EDA welcomed Sertinos as a new <br />business in Hugo. <br />HUGO COMMONS CONSIDERATION OF TIF AGREEMENT <br />Bill Lentsch and Dale Dockendorf (Development Partners Hugo LLC) have a purchase <br />agreement with the property owners of the former "End Zone" site. They have applied for <br />site plan approval and Tax Increment Financing (TIF). The EDA reviewed the TIF <br />Agreement at the meeting and staff provided the EDA with an overview of the agreement. <br />Staff recommends approval of the TIF Agreement. Staff recommended that the EDA provide <br />the City Council with a recommendation on whether or not to approve the agreement. The <br />site plan and TIF Agreement was on the City Council agenda for consideration on Monday, <br />September 15, 2008. <br />The Associate Planner gave an overview of the TIF Agreement. The project is eligible for <br />TIF because it passes the but for test. The applicant requested TIF for the following: <br />— Demo $61,490 <br />— Pub Improvements $190,000 <br />— Site Improvements $291,610 <br />— For a TOTAL of $543,000 <br />— $543,100 @ 6.5% over 25 years for a total of $1.4 Million <br />The TIF Agreement was put together by Springsted after they completed an analysis of the <br />request. The TIF agreement is Pay-as-you-go, which means that the developer puts all the <br />money up front and there is no risk for the City. Springsted made the recommendation from <br />