04-25-2005 - Laserfiche WebLink

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Mounds View EDA April 25, 2005 Regular Meeting Page 3 are present this evening to provide the Commission and public with an overview of the golf course numbers, how much money is generated through the billboards and its future financial value to the City. He clarified that this meeting is to review the golf course numbers noting that numbers associated with the Medtronic project would become public and discussed at a future EDA meeting. City Clerk/Administrator Ulrich reviewed the following questions and provided clarification and answers: • Question: Clarify the percentage of taxable properties in tax increment districts. o Answer: Currently 16.9% for 2005 and 21.53% in 2004. • Question: How much do TIF districts gain when it goes into tax increment? o Answer: City Clerk/Administrator Ulrich explained that it does not go directly to the General Funds in support of the community. He stated that last year $1.8 million was tax increment\tax capacity and the prior year was $1.58 million. He stated that Tax Increment District 1, which covers the southeast area of the City and the Industrial Park area, expires in 2013, District 2 expires in 2015 and District 3 expires in 2014. • Question: What are the percentages if the Medtronic project numbers are added to the proposed development. o Answer: City Clerk/Administrator Ulrich stated that Medtronic would be 24.5%. He stated that no decisions have been made with respect construction costs noting that the tax increment would be subjected to a cap. • Question: Where do they rank in terms of the highest percentage and TIF? o Answer: City Clerk/Administrator Ulrich stated that the City of Mounds View is ranked 1st in the State for TIF noting that in terms of percentages the City was ranked 1st for 2005. • City Clerk/Administrator Ulrich clarified that the Bridge is part of TIF District 3. He indicated that the Legislation proposes to expand the district up to four districts to accommodated the subsequent phases of Medtronic. He indicated that 40-acres would be deeded to the City with the provision that the land would be used for public purpose. He stated that Legislation would remove the requirement to allow sale of the property. • Legislation Update: City Clerk/Administrator Ulrich explained that the Capital Bonding Bill is necessary for the improvements required for County Road J, the Interchange and Airport Road. He noted that the monies for the project are included in the current Capital Bonding Bill, if the project goes through. • Question: Is it possible for property to be developed without tax increment. o Answer: City Administrator Ulrich confirmed stating that it is possible to develop this site without tax increment. He stated that it is expensive but not prohibitive to do the project without tax increment funding. He stated that it would cost approximately $400,000 to bring water and utilities to the site noting that Medtronic would pick up the costs within the site. • Question: What are the sources of funding?