05-09-2005 - Laserfiche WebLink

Home Browse Search

Mounds View EDA May 9, 2005 Regular Meeting Page 6 percent inflationary that Staff used on the golf course projections. He stated that the land value, at the end, would be $16.5 million noting that with depreciation of the account, it would be free of being necessary for defraying costs by 2019 and would be able to stand on its own. He explained that his reason for bringing this up is because the numbers have been presented noting that the total value of the land and assets along with the fixed assets, would be, at a minimum, $26.2 million in equity. He stated that he is curious as to why the City of Mounds View would let this jewel slip through their fingers when the numbers from Staff show a worth of $26 million in TIF alone. Barbara Haake, 3024 County Road I, acknowledged that Medtronic is a fabulous company adding that she has a couple of questions. She noted that Medtronic has a beautiful campus located in Fridley and asked why they did not expand in Fridley. She stated that she did some of her own research on the assessment agreement with Anoka County stating that she found out that there were areas available but that Medtronic did not want to pay the square footage amount. She stated that it was her understanding that certain areas were also removed from the equation and asked if this was true. She stated that rumor has it that they were only paying $80 per square foot on the property and that Fridley could have sued. She asked for further clarification on the assessment agreement. She asked for clarification on the calculations used to determine the park dedication fees noting that the agreed amount is $600,000 and with a property valued at $8.5 million, based on the 10-percent calculation, shouldn’t the amount for park dedication fees actually be $850,000. She asked if there were legal reasons that they were not able to use the 10- percent calculations noting that other businesses had to pay a 10-percent park dedication fee. She stated that in summary she would like to know why Medtronic did not expand in Fridley; How were they able to negotiate the conference and café square footage; and how did they come up with the park dedication fee numbers. Mr. Mahle explained that there was not enough room in Fridley for the size of the facility they want to build. He stated that the initial project would be 840,000 square feet noting that they would require additional space to expand up to 1.5 million square feet. Mr. McCombs further explained that corporations have to plan for their future and Medtronic is trying to project out how best to take care of their growth over the next ten to twenty years. He stated that this move would help to address their growth needs over the next few years. He referenced the assessment agreement in Anoka stating that there are different ways used in how they calculate square footage, which was part of their discussion, through mediators, with Anoka. He stated that through these discussions both parties agreed to numbers that were deemed appropriate for that site. City Administrator Ulrich acknowledged that the park dedication is less than the 10-percent used as a standard for smaller projects. He acknowledged that there were legal issues and explained that Staff did review other Communities to help determine the percentage that would be used, on average, to determine park dedication fees in a project of this size. He stated that Staff is willing