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Economic Development Consultant Mulrooney replied that both payments would be accelerated. <br /> <br />Councihnember Zimmerman inquired as to why the creation of 50 new jobs was included in the <br />development agreement and questioned if that was an unreasonable request. <br /> <br />Economic Development Consultant Mulrooney replied that the 50 jobs was the projection <br />provided by the company, noting that at that time the economy was a lot different than it is at this <br />time. In addition, the creation of 50 jobs was also a requirement the State imposed in order for <br />them to receive the loan from the State. <br /> <br />Councihnember Zimmerman inquired as to what aspect of their business is impacted by a slower <br />economy. <br /> <br />Ted Mateski, President of Systematic Refrigeration, thanked the City for all their assistance with <br />getting the project developed. He stated that their business is not immune to the slowing <br />economy because they count on new construction for their business. Mr. Mateski explained that <br />since they have been located in Ramsey they had increased their number of jobs to 64, but had to <br />do some layoffs or not replace workers. He felt that in the long term they will meet those goals, <br />but he was not sure when. <br /> <br />Councihnember Hendriksen questioned the security that guarantees the $892,000. <br /> <br />City Attorney Goodrich replied that the security on the $300,000 loan is a second mortgage <br />secm'ing the grant the City received from the State, as well as the City having a security <br />agreement for personal property on the site. State law protects the $592,000 as it pertains to TIF. <br />The action before the Council would not place the City in any different situation than what <br />currently exists. <br /> <br />Councilmember Kurak stated that if Systematic Refi'igeration were to default on the first <br />mortgage, then the State of Minnesota could take over the building. She questioned if that were <br />to occur, would the only way the City could collect on the $300,000 be to buy back their portion <br />from the State of Minnesota. <br /> <br />City Attorney Goodrich replied yes. <br /> <br />Councilmember Kurak inquired if the property were to go into arrears on taxes and Anoka <br />County steps in to collect their taxes would the County still have to pay the City of Ramsey. <br /> <br />City Attorney Goodrich replied that the County would be required to pay the City of Ramsey if <br />the taxes are collected. <br /> <br />City Council/January 8, 2002 <br /> Page 9 of 27 <br /> <br /> <br />