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<br /> <br />Councilmember Musgrove asked Economic Development Director Sullivan to explain the 60/40 <br />ratio and how this will benefit Ramsey as far as resident tax dollars that will go into the TIF versus <br />the general fund. <br /> <br />Economic Development Director Sullivan gave an example of another business that received a <br />TIF pay-as-you-go note and stated that the developer gets all over their costs paid for and once the <br />number is paid for, the additional revenue that is generated will then go into the TIF district to be <br />used for items that the City has already paid for. He stated that with the 60/40 ratio, 40% will be <br />coming back to the City and will help with the City’s costs sooner. <br /> <br />Councilmember Musgrove asked Economic Development Director Sullivan to elaborate on the <br />dollars that will go back to the developer and asked if this was paying the developer to build their <br />own building out of TIF dollars. <br /> <br />Economic Development Director Sullivan reviewed the costs of this project and explained that <br />TIF financing finances a portion of the costs. He added that without doing this project there would <br />be a piece of land that is not on tax rolls. He explained that the City will be getting paid for this <br />land when it is sold. He stated they will not get paid for the land and it will be paid over a 12 year <br />period. He added that the tax dollars the applicant will pay will be financing their improvements. <br />He stated that the City is not losing anything and it is only a delayed return to the City. <br /> <br />Councilmember Musgrove asked about the right of reentry and for further explanation on the <br />delays and changes to the schedule. <br /> <br />Economic Development Director Sullivan said that the applicant could request this and proof <br />would need to be shown. He explained that the project will be finished and that is the goal. <br /> <br />Councilmember Musgrove shared her appreciation for the 60/40 ratio. She stated she would like <br />to see the right of reentry tightened up. She added she would like to have seen this earlier. <br /> <br />Councilmember Howell thanked Economic Development Director Sullivan for all the answers and <br />explanations he has provided concerning TIF. She shared that she has had the opportunity to hear <br />about this from the EDA meetings. She shared her excitement for the hotel; however, she is not <br />excited about the amount of assistance that is required. She shared she will not be supporting this <br />at this time due to the assistance requested. <br /> <br />Councilmember Riley explained that the pay-as-you-go is an important factor for the City. He <br />stated that Ehler’s has already looked at this and made sure that this does not unjustly enrich the <br />developer. He shared that these are the reasons he will be supporting this. <br /> <br />Mayor Kuzma asked if there was an appetite to move this to closed session. There was none. <br /> <br />Councilmember Olson shared that after sitting on the EDA and watching this project develop, he <br />is enthusiastic about this. He added that all safety nets have been used to make sure that this does <br />not unjustly enrich the developer. He shared his support. <br />City Council / January 24, 2023 <br />Page 8 of 11 <br /> <br /> <br />