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<br />Economic Develoment Authority Minutes <br />March 5, 1990 <br /> <br />Page 2 <br /> <br />e <br /> <br />Mr. Cremons indicated that if the developers can receive City financial <br />assistance for the sprinkling system, they will meet the requirement of <br />the State for installing the system. <br /> <br />3.B. City Assistance for AmericInn Motel <br /> <br />Mr. Cremons indicated that the cost of the sprinkling system was an <br />unanticipated cost and that all of the developer's funds and equity <br />have already been put into the project. He indicated to the EDA that <br />the developers do not have the $47,500 in order to install the <br />sprinkling system. He stated that he sees four financial areas to <br />investigate: 1) a modification to the existing TIF plan in order get <br />more funds; 2) excess increment from existing TIF Districts; 3) <br />Revolving Loan funds; and 4) the developer's own funds. Mr. Cremons <br />indicated that if the City offered the developers money through the <br />Revolving Loan Fund, then the developers would personally guarantee the <br />Revolving Loan for protection of the City. <br /> <br />Tim Keane, City Attorney, stated that the EDA should decide what level <br />of participation the City is willing to accept in order to facilitate <br />this additional cost and he indicated that he would suggest that <br />modification to the TIF plan would be the City's last resort. <br /> <br />e <br /> <br />The EDA discussed the pro's and con's for the four options. Chairman <br />Tralle indicated that the EDA must first decide how much money they <br />want to use to participate in this project. He suggested that the EDA <br />consider 50% City assistance and the developer be required to pay 50%. <br />Commissioner Kropuenske indicated that he would like to see the City <br />assist the project but would rather not alter the existing TIF plan. <br />Mr. Cremons indicated that the developers do not have the additional <br />50% of the $47,500 to put towards the sprinkling system. Commissioner <br />Schuldt indicated that he would be in favor of altering the TIF. He <br />stated that the only reason the EDA has looked negatively on this is <br />because of the County's negative attitude towards TIF. <br /> <br />Commissioner Holmgren suggested that the City finance 50% through the <br />Revolving Loan and that City finance the remainder of the 50% through <br />some other means. Commissioner Kropuenske indicated that he had <br />problem with setting a precedent by putting out 100% of the funds <br />necessary for the developer. He indicated that he would like to see <br />the developer pay a portion of the funds. Commissioner Kropuenske <br />further stated that he would agree with Commissioner Holmgrens 50-50 <br />proposal, however, he would like to see the developer pay a small <br />portion of this. Mr. Cremons stated that he would commit 5,000 towards <br />the $47,500, so as not to set a precedent. <br /> <br />e <br /> <br />COMMISSIONER HOLMGREN MOVED THAT THE CITY PAY 90% OF THE COST TO <br />INSTALL THE SPRINKLING SYSTEM AND THAT THIS AMOUNT NOT EXCEED $42,500 <br />WITH THE CITY STAFF TO STRUCTURE THE SOURCES OF FUNDS IN THE FOLLOWING <br />ORDER: 1) EXISTING TIF EXCESS PROCEEDS; 2) REVOLVING LOAN; 3) <br />AMENDMENT TO THE TIF PLAN AND THAT IF A PLAN MODIFICATION IS NECESSARY <br />TO PREPARE THEN MODIFICATION AND NOTIFICATION TO THE COUNTY AND SCHOOL <br />DISTRICT AND FURTHER THAT ANY SAVINGS ON CONSTRUCTION COSTS WILL BE <br />