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<br /> ','"'I' iu' ,1\ ? ~ <br /> !W In\ 'c <br /> L 1,-..' <br />. \,;.. c J <br /> ARDEN HILLS CITY COUNCIL - MAY II, 1998 5 <br /> E. During 1997, Fund No. 522 was closed and fund assets and liabilities were transferred <br />. into the Economic Development Authority. The $324,999.88 liability to the PIR Fund <br /> for Kem Milling site project costs were split between TIF District #1 -$99,999.88; and <br /> TIF District #2 -$225,000.00. StatTrecommends a debt payment in the amount of <br /> $39,999.88 from Fund No. 703, TIF District #1, to PIR Fund No. 501. The result of this <br /> action would leave an EDA December 31, 1997, liability to the PIR Fund for Kem <br /> Milling project costs of $285,000.00. <br /> F. TIF District #2, Round Lake Office, incurred significant Gateway development costs <br /> during 1997. Since bonds for these public improvements were not issued until 1998, <br /> Fund No. 704 has a need for short-term financing. Staff recommends a $200,000.00 cash <br /> advance from the PIR Fund No. 501 to TIF District #2 Fund No. 704 in the amount of <br /> $200,000.00. This liability will be repaid to the PIR Fund in 1998. <br /> Mr. Post stated that if Council agrees with Staff recommendations A through F, they should <br /> authorize StatTto book such transactions as of December 31, 1997. <br /> Councilmember Malone inquired if the previously referred transfer numbers I through 4 were <br /> booked in November, 1997. Mr. Post stated that was correct. <br /> Councilmember Malone inquired if the EDA realized more from the bond sale than was <br /> expected. Mr. Post stated that the issuance costs were lower than expected and there was a small <br /> accrued interest factor. <br />. MOTION: Councilmember Hicks moved and Councilmember Malone seconded a motion to <br /> approve the operating transfers between funds, as outlined in the City <br /> Accountant's memo of May 8, 1998. The motion earried unanimously (5-0). <br /> C. Midwest Asphalt Settlement <br /> Mr. Fritsinger explained that the City has been proceeding in litigation with Midwest Asphalt <br /> Corporation over the past two years. The case was tried in November of 1997 with the judge <br /> issuing his findings in February of 1998. <br /> . <br /> Mr. Fritsinger explained that the Order issued by the judge dismissed the bulk of claims made by <br /> Midwest Asphalt. The only claim that was allowed to go forward was a limited "quantum merit" <br /> claim. The judge held that the claim is limited to only those increased costs ",'hich are <br /> attributable solely to the delay in utility work; and which can be shown to have been directly <br /> covered by that delay; and from no cause attributable to the utility companies, or the nature and <br /> extent of the utilities. <br /> As part of the Order, the judge seheduled a pretrial settlement conference on April 15, 1998. <br /> Since this date, Staff has been negotiating a settlement with Midwest Asphalt. The League of <br /> Minnesota Cities Insurance Trust has also been part of these negotiations, as it is willing to <br />. contribute to such a settlement. <br /> Mr. Fritsinger stated that the plaintiff, Midwest Asphalt Corporation, has made a settlement <br /> proposal of $20,250, $11,500 paid by the City of Arden Hills and $9,000 paid by the League of <br />