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EDC Minutes August 20, 2004 Page 3 discussions it was clear that CRESA’s undisclosed end user was interested in potentially buying the Bridges, the City’s golf course, to develop a corporate office campus. The first phase of the development was a 500,000 sq. ft. facility with over 1,000 employees. Backman showed members a map of the City’s property (the developed portion of the golf course—70+ acres and the undeveloped area 45+ acres). To date most of the focus and information (utility and environmental) that Backman has provided to CRESA has largely pertained to the developed area. On July 26, 2004, the Mounds View EDA adopted a motion to proceed with Title Commitment research of the property to verify ownership, easements and any covenants that might exist. The City is working with Kennedy & Graven and with Old Republic regarding this information. On August 10th, Kurt Ulrich, City Administrator and Backman met with CRESA representatives to discuss process, developability of the site and economics. Johnson asked if we are in competition with other sites. Backman indicated there are several sites being considered. Field asked if there has been opposition to this potential development. Backman expressed surprise that there hasn’t been more and concern for the staff directly impacted. However, it is an opportunity to add significant tax base to the City. He reviewed a memo prepared by Mary Ippel, Briggs & Morgan, regarding TIF considerations relative to the Bridges. The consensus of the Commission was that we should pursue this development opportunity, explore all funding options, and study our infrastructure requirements that would be needed in Mounds View and neighboring communities for this project. [Entsminger left the meeting] B. Discussion of a Proposed TIF Parcel Decertification. Backman had provided a memo prepared by Jim Ericson for Charlie Hansen, Finance Director, regarding the decertification of parcels from two TIF districts (11 parcels from District #2 and 1 parcel from District #1). Backman indicated that the City does need to periodically evaluate whether parcels should be in TIF districts. Ones that should be removed are ones where redevelopment is unlikely to occur or where development has occurred without TIF assistance. The total taxable value of the 11 parcels is $11,750,000 or about 10% of the taxable value in the three TIF districts. What is the financial impact of this? It will reduce our economic development resources by about $210,000 or 10% a year. Field asked about the seven homes being decertified. Backman replied that these homes along County Road I are unlikely to be redeveloped to commercial use especially since they abut other residential properties. Johnson asked why should the City approve this? Backman stated that there are political and financial reasons to do so. The City Council has a number of times asked that this be done (and the City has a high percentage of its commercial property in such districts). Financially, when the properties come back onto the tax roles, those tax revenues will go to the school district, county, and the city (the latter in the form of general funds). Moreover, it is better to limit districts to parcels where we think redevelopment will likely occur. After discussion a motion was made by Field to recommend approval of the decertification of the 11 designated parcels from their respective TIF districts, seconded by Helgemoe. Passed 5 to 0. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the August 20th meeting of the Economic Development Commission at 8:58 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator