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Economic Development Authority Minutes Page 2 October 20, 2014 Q11 10 I 71 I - - 4 0001&3�� No one appeared for Open Forum. 5.1 Stonesthrow Properties, LLC (Coin-Tainer) Tax Abatement arL1, Microloan Review Mr. Barnhart presented the staff report. He stated the Finance Committee met earlier that day to review Coin-Tainer's tax abatement and 1111"croloan application and determined that the corruTintee was not able to approve the application and were requesting the applicant resubmit. The committee expressed concerns with establishing; a precedence allowitig for 1 00"/o abatement for the existing building. Mr. Barnhart explained that most of the abatements that have been approved were on vacant land with no building on that land with the exception of The Bank of Elk River (the city abated the tax increment difference between the value at that time and the value that was being proposed in 2006, with a major addition). Mr. Barnhart outlined the questions from the Finance Committee: 1) What are the future projections of both companies. 2) What is the absorption of the lease rates for the existing tenants on the property and will any cash flow would be impacted. 3) There is concern with the contract For deed terms, and when the balloon payment is due in 5 years how the permanent financing will Impact cash flow. 4) The committee wanted a better understanding of the guarantees of the nucroloan. Mr. Barnhart stated the committee would have a better level of comfort to make a decision after receiving answers to these questions. He requested the public hearing be opened and either closed or continued to next month to allow staff time to work with the applicant. He requested input from the EDP on the question of abatement for an existing building and the comfort level an abating 100% of the value or a portion of the increment. Mikaela Huot from Springsted and the applicant, Dave Walters, were present to answer questions, President Tvelte opened the public hearing. No one spoke. President] I veite left the public hearing open during discussion. Commissioner Motin asked for clarification regarding abatement of existing buildings. Mr. Barnhart provided a handout with a summary of businesses that were abated since 2004.