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Economic Development Authority Minutes <br /> August 28, 1989 <br /> 9a. Update/TIE Page 3 <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 j <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 /> COMMISSIONER HOLMGREN MOVED TO , ORIZING STAFF 5./ <br /> TO PREPARE AND DISTRIBUTE TO THE COUNTY AND SCHOOL BOARD AN AMENDMENT TO <br /> THE ECONOMIC DEVELOPMENT PROGRAM FOR ECONOMIC DEVELOPMENT DISTRICT NO. 1 <br /> AND A TAX INCREMENT 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 /> 9b. Mork Clinic/G.O. Bonds <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 devlopment or <br /> redevelopment. Commissioner Tralle indicated that the City should <br /> investigate whether they wish to get into this type of financing and also <br /> • <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 pay off 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 /> 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 /> 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 /> project. <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 /> 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 Dobel stated that he would be <br /> opposed to allowing G.O. financing because the borrowers could default on <br />