RES 89-1 Economic Development Authority Minutes
August 28, 1989
9a. Update/TIE Page 3
Dick Fursman informed the EDA that Dick Moore of Mork Clinic, has
presented the City with a check for $5,000 which will start the process
of the TIF Redevelopment Plan for the Mork site. City Attorney, Peter j
Beck, indicated that the TIF plan should be drawn up and ready for
distribution to the County and School Board within approximately two
weeks.
COMMISSIONER HOLMGREN MOVED TO , ORIZING STAFF 5./
TO PREPARE AND DISTRIBUTE TO THE COUNTY AND SCHOOL BOARD AN AMENDMENT TO
THE ECONOMIC DEVELOPMENT PROGRAM FOR ECONOMIC DEVELOPMENT DISTRICT NO. 1
AND A TAX INCREMENT FINANCING PLAN FOR PROPOSED REDEVELOPMENT TAX
INCREMENT FINANCING DISTRICT NO. 6 FOR THE MORK CLINIC PROJECT.
COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0.
9b. Mork Clinic/G.O. Bonds
Dick Fursman, Economic Development Coordinator, indicated that Dick Moore
of Mork Clinic has expressed interest in G.O. Bond financing for the
proposed new clinic. He indicated that the City has the authority to
bond for the purpose of making loans for economic devlopment or
redevelopment. Commissioner Tralle indicated that the City should
investigate whether they wish to get into this type of financing and also
•
(• that they should be aware of the precedence which may be set for other
possible projects. Dick Fursman stated that the City is in a position to
make money off of the loan and that this is one way to generate some
income for the economic development office and, save the tax paying
residents some money. He indicated that he felt it was worth the effort
on the City's part to proceed with this type of financing. He indicated
that the down side of the G.O. financing would be if the borrowers did
not come through and pay off the loan, the City would have a building
that is not paid for and they would be responsible for payment of the
building.
Mike Mulrooney stated that another alternative would be private placement
loan. He stated that this is a good alternative although it would
require equity on the borrowers part.
Commissioner Schuldt questioned what detrimental affect a no vote would
have on this request. Dick Fursman stated that it could slow down the
project.
Commissioner Kropuenske questioned how the EDA would pick and choose when
to use a G.O. Bond for certain projects in the future. He stated that he
likes the idea of private placement because the City would not be setting
a precedence in any way.
Discussion was held on the affect this type of financing would have on
• the City's bond rating. Lori Johnson, Finance Director, indicated that
this could possibly have an affect on the bond rating according to the
City's financial consultant. Commissioner Dobel stated that he would be
opposed to allowing G.O. financing because the borrowers could default on