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Mounds View City Council June 20, 2005 Special Meeting Page 2 holes 2 through 5, and develop the excess 26 acres. The fifth option was the Medtronic proposal with TIF financing. The sixth option was to sell the course to a different entity and provide no TIF. In summary, he noted the Medtronic proposal would be above and beyond the benefits of the golf course. 7. PUBLIC SUBSIDY AND FINANCIAL REVIEW (Ehlers & Associates) Stacie Kvilvang, Ehlers and Associates, reviewed the special legislation by the creation of an Economic Development TIF District and the sale of the former MnDOT property – reverter legislation. She summarized the acquisition/park dedication fees and the retention, conditions prior to conveyance, right of reverter, resale of reacquired property, and relocation or termination/acquisition of billboard leaseholds. She reviewed the construction of minimum improvements, public improvements, administrative expenses, and tax increment financing. She summarized the wetland mitigation, prohibition on tax exemption, sale or assignment, events of default, Phase II and Phase III, and golf course equipment and club house. She reviewed the golf course financing, how the golf course was financed, the historical golf course gross revenue, and the annual Interfund Loan required. 8. PUBLIC HEARING A. Public Hearing in regard to a proposed business subsidy to be granted by the EDA to Medtronic, Inc. under Minnesota Statues Sections 116J.993 through 116J.995. The proposed subsidy involves tax increment financing assistance to facilitate development by the Recipient of an 820,000 sq. ft. business in the City of Mounds View. B. Public Hearing in regard to consideration of the proposed sale of land comprising The Bridges Golf Course in the City of Mounds View, which is presently owned by the City of Mounds View, to Medtronic, Inc. 9. PUBLIC COMMENT Mayor Marty asked that before speaking, audience members give their full name and address for the minutes. He advised Mounds View residents and businesses would have the first opportunity to speak, with nonresidents speaking last. He advised that a five-minute time limit would be strictly enforced with PowerPoint presentations being limited to 10 minutes. Warren Johnson, 7710 Greenwood Drive, asked if MEDTRONIC built this building, how much money would the City receive per year in taxes. Ms. Kvilvang, Ehlers & Associates, replied the City would receive approximately $43,000 annually for the general fund that would increase over time while the TIF District was in use and once the TIF District was done, the amount would go up considerably because Medtronic would be paying the full value in taxes. Mr. Johnson asked with all of the money coming in, how much would the resident’s property taxes to be reduced. Ms. Kvilvang replied the goal of the City and EDA was to not have any tax