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Economic Development Authority Minutes Page 2 <br /> October 20,2014 <br /> 3.6 Participation Agreement with Greater MSP for the Salesforce <br /> Program as outlined in the staff report. <br /> Motion carried 6-0. <br /> 4. Open Forum <br /> No one appeared for Open Forum. <br /> 5.1 Stonesthrow Properties, LLC (Coin-Tainer) Tax Abatement and <br /> Microloan Review <br /> Mr. Barnhart presented the staff report. He stated the Finance Committee met earlier <br /> that day to review Coin-Tainer's tax abatement and microloan application and <br /> determined that the committee was not able to approve the application and were <br /> requesting the applicant resubmit. The committee expressed concerns with <br /> establishing a precedence allowing for 100% abatement for the existing building. Mr. <br /> Barnhart explained that most of the abatements that have been approved were on <br /> vacant land with no building on that land with the exception of The Bank of Elk <br /> River (the city abated the tax increment difference between the value at that time and <br /> the value that was being proposed in 2006,with a major addition). <br /> Mr. Barnhart outlined the questions from the Finance Committee: <br /> 1) What are the future projections of both companies. <br /> 2) What is the absorption of the lease rates for the existing tenants on the property <br /> and will any cash flow would be impacted. <br /> 3) There is concern with the contract for deed terms, and when the balloon <br /> payment is due in 5 years how the permanent financing will impact cash flow. <br /> 4) The committee wanted a better understanding of the guarantees of the <br /> microloan. <br /> Mr. Barnhart stated the committee would have a better level of comfort to make a <br /> decision after receiving answers to these questions. He requested the public hearing <br /> be opened and either closed or continued to next month to allow staff time to work <br /> with the applicant. He requested input from the EDA on the question of abatement <br /> for an existing building and the comfort level in abating 100% of the value or a <br /> portion of the increment. <br /> Mikaela Huot from Springsted and the applicant, Dave Walters,were present to <br /> answer questions. <br /> President Tveite opened the public hearing. No one spoke. President Tveite left the <br /> public hearing open during discussion. <br /> Commissioner Motin asked for clarification regarding abatement of existing <br /> buildings. <br /> POWERED D 1 <br /> NATURE <br />