Agenda Packets - 2005/09/12 - Laserfiche WebLink

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Mounds View City Council August 8, 2005 Regular Meeting Page 5 Mr. Perrozzi stated that he did ask both Director Ericson and Economic Development 1 Coordinator Backman what direction they wanted to see for this site and he was told retail. He 2 stated that this was the direction he took in remodeling the building but found it is hard for him 3 to do when he has to enter the building on the east side and step down five steps to enter the 4 building. He stated that they kept telling him the grading was fine adding that he caught the 5 problem the day they were digging the footings. 6 7 Council Member Thomas cautioned the Council and City Staff stating that they have to be 8 careful with the level of their involvement, as to the extent of what the City could do to support 9 the process, when they are not a party to the negotiations. She agreed that there are issues that 10 the Council could help with but there are also issues that the Council can’t resolve. She agreed 11 that Council should review and discuss this issue at their first work session in September and 12 then determine what kind of assistance, if any, the Council could provide. 13 14 Mr. Perrozzi asked who would be responsible for plan review and blueprint acceptance. He 15 asked if it would be the City, Velmeir or Loucks. 16 17 Mayor Marty stated that Council would review this issue at the next Council work session in 18 September. 19 20 Duane McCarty, 8060 Long Lake Road, stated that he has some concerns regarding the draft 21 Medtronic contract he requested and received three weeks ago. He stated that the way he sees it, 22 after reviewing the contract, the way the proposal was presented there was a lot of attention made 23 to the $14.8 million that Medtronic would pay upfront to help enhance the feasibility of the 24 project, but after reading the purchasing agreement he realized that Medtronic would receive 25 repayment of that $14.8 million from the tax increments, which means that Medtronic would get 26 their investment back via a note from the City at 5-percent interest. He stated that he would like 27 to be able to get 37-percent of his property taxes back at 5-percent interest noting that he thought 28 that Medtronic stood a bit higher than that in terms of their commitments. 29 30 Mr. McCarty stated that there is also an indemnity clause included in the contract that would 31 require the City to indemnify all persons against what the contract identifies as environmentally 32 unsafe situations at the golf course property. He stated that although there is some claim that 33 there would be a $200,000.00 limit on the City, he is not sure how this would work. He asked 34 who would pick up the balance if an injured party were to sue and be granted, in court, an award 35 in excess of $200,000.00. He expressed concerns stating that this issue has not been clearly 36 outlined in the contract. He expressed his doubts that the City and Medtronic would be able to 37 contractually agree that the most they would ever pay out on a claim of harm, under these 38 conditions, would be capped at $200,000.00. 39 40 Mr. McCarty stated that much of the proposal and presentation revolved around three phases for 41 the Medtronic project. He stated that the purchase contract that is before Council that would run 42 for 25-years, very clearly only touches on or controls Phase 1. He stated that Phase 2 and Phase 3 43 were purposely left out so there is no guaranty or warranty that the City would see anything more 44 than Phase 1. He indicated that the contract recognizes this adding that Medtronic has no 45