Agenda Packets - 2006/02/27 - Laserfiche WebLink

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Mounds View City Council February 13, 2006 Regular Meeting Page 8 Mr. Amundsen stated the additional proportional amount would be closer to $6 million and 1 added to the $3.5 million benefit, it would equal $9.5 million He stated it seems like what will 2 end up happening is the renegotiation of benefits that are already in the TIF agreement. He 3 suggested that it would be reasonable to leave the TIF percentage as it is. 4 5 Mr. Amundsen stated he is not clear as to what the Council is approving, and if it is the same 6 thing as what the EDA approved earlier, he is very disappointed in all members of the Council. 7 He stated the EDA short circuited and denied the public’s ability to provide consent and advice. 8 He stated the acting members of the EDA have already voted and he recommended considering 9 revisiting how the EDA is established. Mr. Amundsen stated the members are not going to 10 change their attitudes from the EDA to the Council. He pointed out the EDA and Council are 11 separate authorities under government law, but the same people are involved. He suggested it be 12 put on the agenda to review how EDA authority is seated and ways to improve so there is a less 13 direct connection to the City Council. 14 15 Mayor Marty stated the Council is approving the modification of the TIF and asked Director 16 Ericson to address the utility portion for $3.5 million. Mayor Marty stated he felt that it all 17 should come out of Medtronic’s portion of the TIF. He stated the City can use TIF for this, but it 18 will come out of the City’s 5% administrative fees. 19 20 Director Ericson stated the billboard buyout, billboard relocation and utilities are all TIF eligible. 21 He stated Phase 1 qualified expenses or reimbursable expenses exceeded the available increment 22 by $13 million. He commented there was a total of $25 million of qualified expenses. He stated 23 whether they were qualified expenses or not, there were significant expenses above and beyond 24 what could be repaid with the increment that was generated by the project. He stated the City 25 was not reimbursed from available TIF for billboard buyout, billboard relocation or utility 26 expenses, but they were not part of the original agreement. Director Ericson stated the City is 27 trying to get Medtronic to pay these costs in Phase 2. He also stated the qualified expenses for 28 Phase 2 for the structured parking will exceed the available increment. He commented that the 29 billboard buyout, billboard relocation and utilities are all qualified costs under TIF expenses, but 30 there are so many qualified costs that those dollars are above and beyond what can be repaid with 31 the increment that will be generated from the project. 32 33 Mayor Marty closed the public hearing at 8:13 p.m. 34 35 MOTION/SECOND: STIGNEY/THOMAS. To waive the reading and adopt Resolution 6745 36 adopting Modification to the Project Plan for the Mounds View Economic Development Project 37 and the Proposed Modification of Tax Increment Financing District No. 5. 38 39 Councilmember Stigney stated his support and noted there already has been improvement with 40 the tax levy of 0% and this is a direct result of Mounds View buying out the golf course. 41 42 Mayor Marty stated he does not feel that Medtronic is a prisoner and the City is holding it over 43 them to not give them anything. He stated he is trying to get the City to negotiate what it can. 44 He stated they own property and are residents of Mounds View. He stated his goal is to try to get 45