Agenda Packets - 2006/02/27 - Laserfiche WebLink

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Mounds View City Council February 13, 2006 Regular Meeting Page 6 rather that Medtronic would have to fill out the application. She asked if Medtronic could 1 respond or present a written list of the But-For statements. 2 3 Mayor Marty stated he asked at the EDA meeting for a copy of the TIF application that would 4 include the But-For statements. He mentioned TIF applications were submitted to the Council in 5 other development proposals, but with Medtronic Phase 1 development, he did not see or receive 6 the TIF application although it was discussed. 7 8 Councilmember Gunn stated on Appendix F in the Council packet includes But-For statements. 9 10 Councilmember Flaherty reviewed Appendix F and stated the current market value of Phase 1 is 11 $9.1 and the new market value with Phase 2 is $96 million. He stated the market value likely to 12 occur without TIF is $62.6 million, so the But-For is $34 million. 13 14 Mr. Inman stated the only statutory But-For requirement is to attempt to see whether value is 15 created over and above the tax increment. He stated this requirement has been met. 16 17 Mayor Marty referenced Appendix F regarding the $20 million bonding received from the State, 18 which covers the transportation improvements for the development. 19 20 Stan Meyer, 2812 Sherwood Road, stated he requested the percentage of ability to tax for 21 Medtronic with and without Phase 1 and Phase 2, and recalled it is going up to 23%. He 22 commented the City has been fiscally irresponsible regarding this project. He stated he sees no 23 downside to wait on Phase 2 because Medtronic is not going anywhere because they already have 24 so much invested into the development. Mr. Meyer stated the City should wait and see where the 25 money will come from. 26 27 Mr. Meyer commented it sounds like the City is too much in love with the deal and afraid to let it 28 go, which results in bad bargaining and a weak position. He noted the City is in a much stronger 29 position, so the City should wait to see how much it will cost, because Medtronic is not going 30 anywhere. He stated Medtronic is counting on the current Council because Medtronic does not 31 know about the Council for the following years. He stated the Council is in a good bargaining 32 position, and it does not have to give up $8.5 million because Medtronic is going to expand the 33 development anyway. 34 35 Mr. Meyer stated the Council needs to wait and have things settle before passing bonding or TIF 36 district. He thought the purpose of TIF districts is to help small businesses to come into the 37 community to hire people from the community. He stated there will not be any benefits to 38 existing businesses because there are no businesses close to the project. Mr. Meyer stated the 39 Council should be more responsible and the decision should be delayed and bargained for harder. 40 41 Mayor Marty agreed that the City has a stronger bargaining capability since Medtronic already 42 owns the property. 43 44 Dan Hall, 2200 Highway 10, stated he has already seen an increase in his business and Medtronic 45