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ARDEN HILLS CITY COUNCIL - MAY 11 , 1998 5 E. During 1997, Fund No. 522 was closed and fund assets and liabilities were transferred into the Economic Development Authority. The $324,999.88 liability to the PIR Fund for Kern Milling site project costs were split between TIF District #1 -$99,999.88; and TIF District #2 -$225,000.00. Staff recommends a debt payment in the amount of $39,999.88 from Fund No. 703, TIF District #1, to PIR Fund No. 501. The result ofthis action would leave an EDA December 31, 1997, liability to the PIR Fund for Kern Milling project costs of$285,000.00. . F. TIF District #2, Round Lake Office, incurred significant Gateway development costs during 1997. Since bonds for these public improvements were not issued until 1998, Fund No. 704 has a need for short-term financing. Staff recommends a $200,000.00 cash advance from the PIR Fund No. 501 to TIF District #2 Fund No. 704 in the amount of $200,000.00. This liability will be repaid to the PIR Fund in 1998. Mr. Post stated that if Council agrees with Staff recommendations A tlrrough F, they should authorize Staff to book such transactions as of December 31, 1997. Councilmember Malone inquired if the previously referred transfer numbers 1 through 4 were booked in November, 1997. Mr. Post stated that was correct. Councilmember Malone inquired if the EDA realized more from the bond sale than was expected. Mr. Post stated that the issuance costs were lower than expected and there was a small accrued interest factor. . MOTION: Councilmember Hicks moved and Councilmember Malone seconded a motion to approve the operating transfers between funds, as outlined in the City Accountant's memo of May 8,1998. The motion carried unanimously (5-0). C. Midwest Asphalt Settlement Mr. Fritsinger explained that thc City has been proceeding in litigation with Midwest Asphalt Corporation over the past two years. The case was tried in November of 1997 with the judge issuing his findings in February of 1998. Mr. Fritsinger explained that the Order issued by the judge dismissed the bulk of claims made by Midwest Asphalt. The only claim that was allowed to go forward was a limited "quantum merit" claim. The judge held that the claim is limited to only those increased costs which are attributable solely to the delay in utility work; and which can be shown to have been directly covered by that delay; and from no cause attributable to the utility companies, or the nature and extent of the utilities. As part of the Order, the judge scheduled a pretrial settlement conference on April15, 1998. Since this date, StafThas been negotiating a settlement with Midwest Asphalt. The League of Minnesota Cities Insurance Trust has also been part of these negotiations, as it is willing to . contribute to such a settlement. Mr. Fritsinger stated that the plaintiff, Midwest Asphalt Corporation, has made a settlement proposal of$20,250, $11,500 paid by the City of Arden Hills and $9,000 paid by the League of