Agenda Packets - 2005/09/26 - Laserfiche WebLink

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Mounds View City Council August 22, 2005 Regular Meeting Page 9 provide their own needs. She stated it is important for Mounds View to get the best deal 1 possible for this very prime property that is close to two major freeways, and an airport. She 2 stated this property should be of great value to residents of Mounds View and the developer. Ms. 3 Walsh pointed out that citizens are also giving up access to an amenity of a golf course. She 4 stated she has questions about the terms of the contract and stated her understanding that State 5 statutes stipulate TIF Districts should only go for a term of 8 years but Medtronic is receiving a 6 25-year TIF term. 7 8 Mayor Marty explained there are different types of TIF Districts. One is for redevelopment for 9 blighted property or buildings created before 1990. Another is for contaminated soils. He noted 10 there are no buildings at the golf course constructed before 1990 and the soil testing was okay. 11 Because of that, the Legislature indicated the only type of TIF District to qualify would be an 12 economic development district that is capped at 8 years. It was then lobbied for and extended by 13 the Legislature to run an additional 17 years. 14 15 Ms. Walsh asked if this legislation occurred during the extended session. Commissioner Thomas 16 answered it occurred during the regular session. 17 18 Ms. Walsh asked when residents will hear whether the referendum will take place. Mayor Marty 19 answered that it is an agenda item for tonight. 20 21 Ms. Walsh asked about the indemnification and if there is a way to know how much it may cost 22 Mounds View residents. City Attorney Riggs explained the liability is capped for what is being 23 transferred to Medtronic for a $200,000 fee. 24 25 Ms. Walsh asked what that means. Councilmember Thomas explained that if something occurs, 26 liability is capped at $200,000 as the EDA. She noted that environmental studies have been done 27 and it is not believed that anything will come up. 28 29 City Administrator Ulrich further explained that should environmental contamination show up, 30 the City’s liability would be capped at $200,000. Environmental liability that carries with the 31 property is a separate item and if there should be an environmental issue that causes liability then 32 the City, because of the nature of environmental law and chain of title, could be brought back in. 33 He stated there is no way to predict and he cannot estimate a dollar. 34 35 Ms. Walsh asked if catastrophic environmental insurance is available. City Administrator Ulrich 36 stated there may be if you are willing to pay the premium but he does not know what it would 37 cost. 38 39 Mary Burg, New Brighton Councilmember, stated they had negotiations with Medtronic until 40 mid-June when they learned New Brighton was not a site being considered. She stated the New 41 Brighton Council looked at catastrophic insurance and found a 10-year policy to cover the 42 $250,000 cap that is set by the State. The policy was for $700,000 and would go for 10 years. 43 Ms. Burg stated they were concerned at that time because while contamination was not on their 44 site, people would possible sue because of “deep pockets.” She mentioned that she had called 45