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<br />Page 3 <br /> <br />Economic Development Authority Minutes <br />August 28. 1989 <br /> <br />. <br /> <br />9a. Update/TIF <br /> <br />Dick Fursman informed the EDA that Dick Moore of Mork Clinic. has <br />presented the City with a check for $5.000 which will start the process <br />of the TIF Redevelopment Plan for the Mork site. City Attorney. Peter <br />Beck. indicated that the TIF plan should be drawn up and ready for <br />distribution to the County and School Board within approximately two <br />weeks. <br /> <br />COMMISSIONER HOLMGREN MOVED TO ADOPT RESOLUTION 89-1. AUTHORIZING STAFF <br />TO PREPARE AND DI STRIBUTE TO THE COUNTY AND SCHOOL BOARD AN AMENDMENT TO <br />THE ECONOMIC DEVELOPMENT PROGRAM FOR ECONOMIC DEVELOPMENT DISTRICT NO.1 <br />AND A TAX INCIlEMBN'1' FINANCING PLAN FOR PROPOSED REDEVELOPMENT TAX <br />INCREMENT FINANCING DISTRICT NO. 6 FOR THE MORK CLINIC PROJECT. <br />COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. <br /> <br />9b. <br /> <br />Mork C1inic/G.O. Bonds <br /> <br />. <br /> <br />Dick Fursman. Economic Development Coordinator. indicated that Dick Moore <br />of Mork Clinic has expressed interest in G.O. Bond financing for the <br />proposed new clinic. He indicated that the City has the authority to <br />bond for the purpose of making loans for economic dev10pment or <br />redevelopment. Commissioner Tra11e indicated that the City should <br />investigate whether they wish to get into this type of financing and also <br />that they should be aware of the precedence which may be set for other <br />possible projects. Dick Fursman stated that the City is in a position to <br />make money off of the loan and that this is one way to generate some <br />income for the economic development office and. save the tax paying <br />residents some money. He indicated that he felt it was worth the effort <br />on the City's part to proceed with this type of financing. He indicated <br />that the down side of the G.O. financing would be if the borrowers did <br />not come through and payoff the loan. the City would have a building <br />that is not paid for and they would be responsible for payment of the <br />building. <br /> <br />Mike Mulrooney stated that another alternative would be private placement <br />loan. He stated that this is a good alternative although it would <br />require equity on the borrowers part. <br /> <br />Commissioner Schuldt questioned what detrimental affect a no vote would <br />have on this request. Dick Fursman stated that it could slow down the <br />proj ect. <br /> <br />Commissioner Kropuenske questioned how the EDA would pick and choose when <br />to use a G.O. Bond for certain projects in the future. He stated that he <br />likes the idea of private placement because the City would not be setting <br />a precedence in any way. <br /> <br />. <br /> <br />Discussion was held on the affect this type of financing would have on <br />the City's bond rating. Lori Johnson. Finance Director. indicated that <br />this could possibly have an affect on the bond rating according to the <br />City's financial consultant. Commissioner Dobe1 stated that he would be <br />opposed to allowing G.O. financing because the borrowers could default on <br />