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<br />Medtronic Phase 2 Report <br />December 12, 2005 <br />Page 2 <br /> <br />In our opinion and in the opinion of our financial advisor, there is no downside to consider the <br />combined phasing of the projects. No additional funds will be expended that will not be <br />reimbursed. No taxes will be lost, no revenues diverted and no additional infrastructure <br />needed. In fact, the City would gain an anticipated additional 50% in both TIF admin fees <br />and franchise fees above and beyond Phase 1 projections. Mounds View residents and <br />taxpayers will also benefit in that the Medtronic project would shoulder an even greater share <br />of any market based bond referendums or levies (residents approved one for ISD 621 a <br />couple years ago) so all things being equal, taxpayers would pay even less than they <br />otherwise would have. In addition to the potential $2,570,000 in savings the City would <br />immediately realize, instead of a $65 million project coming online in 2033 to significantly <br />boost general fund revs or significantly reduce taxes, the City will instead have a $96 million <br />project coming online in 2033 to even more significantly boost general fund revenues or <br />more significantly reduce taxes. <br /> <br /> <br />Recommendation: <br /> <br />Based on the above analysis which is supported by documentation prepared by Ehlers and <br />Associates, Staff and your financial advisors support moving forward with a negotiation with <br />Medtronic based on the above terms and conditions. If the Council supports the possibility <br />of a modification to accommodate Phase 2 construction concurrent with Phase 1, staff <br />recommends adopting the attached resolution which simply establishes a public hearing to <br />consider such a possibility. Because we are planning on canceling the Dec 27, 2005 EDA <br />and Council meeting, the Council should call for the hearing now to allow for a hearing to be <br />held in February. Accordingly, Resolution 6699 has been drafted for your consideration. <br /> <br />If you should have any questions, please do not hesitate to contact me at 763-717-4021, <br />Kurt Ulrich at 763-717-4001 or Aaron Backman at 763-717-4029. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />Community Development Director <br /> <br />Attachments: <br />1. Resolution 6699