Agenda Packets - 2005/08/22 - Laserfiche WebLink

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Mounds View City Council July 11, 2005 Regular Meeting Page 13 to show that one should learn from history and not repeat the same mistakes. He stated that some 1 of the very people, from past Councils who steered this City to its’ present financial condition, 2 are now the loudest to give the advice as to why bringing in Medtronic is not a good deal. 3 4 Mayor Marty closed the Public Hearing at 8:50 p.m. 5 6 Mayor Marty stated that when the City had the land appraised last fall it was appraised at $10 7 million, the sale price to Medtronic was $8.65 million and since then the Legislature asked for an 8 additional $1 million and Medtronic stepped up to say they would pay the additional $1 million, 9 which brought the total sale amount to $9.65 million. He restated that the land was appraised last 10 fall at $10 million and asked why the City is selling it for less than the appraised value. He noted 11 that he has felt, all along, that the City should go out for bids adding that currently there is only 12 one player in the game. He stated that based on minutes from the last meeting it was quoted that 13 other offers had come in and Staff had deemed that the quotes were not justifiable. He clarified 14 that this was a decision made by Staff, in their own words, not the Council. He stated that he is 15 sure that all members of the Council have received many letters, calls and emails from all sides 16 of the issue and he feels that with an issue of this magnitude that the decision should be made by 17 the citizens. He noted that a couple of years ago the Council discussed the need to hire two 18 additional police officers. He stated that this was brought before the Council and it was shown 19 that the decision would affect the citizens and taxes noting that it was suggested that this should 20 be placed on a ballot through a referendum. He stated that the citizens did stand behind this 21 decision and ultimately the City did hire two additional police officers. He stated that with 22 respect to the current issue, it has been pointed out that in today’s dollars it would lower taxes by 23 one or two dollars over a 25-year period. 24 25 Mayor Marty stated that if Medtronic were coming in, paying for the golf course and not asking 26 for TIF this would be a much better deal. He acknowledged that this would go onto the tax rolls 27 right now but it would not affect the taxes until the TIF is paid off. He stated that the Economic 28 Development District for the TIF that would be used was capped at 8-years, which was extended 29 by the Legislature, through special legislation, to 25-years. He stated that this is their prerogative 30 noting that he does not believe this is a good deal for the City. He explained that if it was an 8-31 year period it wouldn’t be as bad noting that in 8-years the revenue from the taxes would come 32 back to the City sooner. He stated that one of the items mentioned by Ehlers is that in order to 33 have a cap of $14.8 million they were concerned that it would actually take 25-years to pay off. 34 He stated that if they were to get back into a series of tax compression for business taxes it could 35 take the full 25-years or longer. He stated that the City was in this position approximately five to 36 six years ago noting that it has been falling off. He stated that with the new legislature and senate 37 the City ends up back in a situation like this. He stated that he does feel the City is premature 38 noting that other land in the area, such as Roseville, for $300,000 an acre; land in Blaine for 39 $250,000 an acre, land in Lino Lakes selling for $200,000. He stated that the land in Blaine and 40 Lino Lakes are both land-locked, whereas the golf course is prime location off 35W and Highway 41 10/610 adding that he cannot support Mounds View selling the land for $120,000 an acre. He 42 believes the City could get a better deal. 43 44 Council Member Thomas stated that she never actually questioned the decision. She stated that 45