05-23-2005 - Laserfiche WebLink

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Mounds View EDA May 23, 2005 Regular Meeting Page 3 Ms. Kvilvang stated that one item, fiscal disparities, requires discussion. She stated that State law requires new commercial/industrial properties in the 7-County metro area to contribute 40- percent of the valuation to an area-wide pool for all local taxing jurisdictions. She reviewed the impacts noting that the EDA has indicated that the fiscal disparities would be paid inside the tax district. She reviewed the items not captured for TIF noting that in this case Medtronic’s base taxes comprise approximately 6-percent. She stated that the net TIF to Medtronic would be 37- percent or approximately $ .37 of each dollar they pay in taxes. She explained that the Development Agreement is the binding contract and includes all of the details for the project and all of the terms as to how the project would move forward. She stated that the City would pay as they go through the project. She explained that the Developer would bear the brunt of the initial costs and would be required to show proof of completion and payment before the City would make payment to the Developer. She stated that the Developers would pay their taxes; the City would then determine the tax increment and forward payment to Medtronic. Ms. Kvilvang reviewed the Development Performa, the comparable land costs and future development potential for the site. She provided the Commission with a an overview of the 2005 Ramsey County Ranking data noting that the information is based on 2004 data. She stated that at the County level Mounds View is ranked Number 1 and explained that there are three Districts in the City because of the base valuation noting that anything captured for the tax increment base would be a bit higher. She stated that at a State level, in 2004, Mounds View was ranked 11 noting that based on the 2005 data the City’s ranking falls to 26. She stated that they plan to do a comparison that would show where Mounds View falls in the ranking for tax increment percentages. Ms. Kvilvang stated that the next step includes special legislation noting that they were initially looking at a redevelopment district. She explained that when the proposal moved to the House the same legislation was introduced noting that changes were made and the District was changed to an Economic Development District. She further explained that an extension was provided that gives the same benefits and reviewed with the Commission. She stated that the final version would come back to the City for approval and would also be reviewed and approved by the School Board and County. She stated that the review and consideration for approval of the Development Agreement is scheduled for June 20, 2005 and from there it would then move through the standard City approval process. President Marty opened the public hearing at 6:29 p.m. Barbara Haake, 3420 County Road I referenced the Executive Session scheduled to discuss The Bridges stating that from her perspective this a done deal. She referenced the May 4th article in the newspaper about proposed property sale values of $300,000 an acre in Blaine and Roseville, noting that Residents have been told that the City would get $120,000 an acre, and urged the Commission not to ask for anything less than $250,000 per acre. She expressed concerns stating that it feels as if Mounds View is getting taken adding that this is not a good deal for the City of