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Mounds View EDA June 27, 2005 Regular Meeting Page 2 (AUAR), a boundary and topographic survey and pursuing a Comprehensive Plan amendment. He stated that at the end of December 2004 Medtronic presented City Council with a preliminary term sheet concerning the acquisition and redevelopment of The Bridges. He stated that as a result of City Council’s consideration of the offer Council directed Staff to continue to proceed with negotiations with Medtronic and to pursue a course of action consistent with potentially selling The Bridges for redevelopment. Mr. Backman explained that the term sheet indicated that the Mounds View EDA would seek special TIF legislation that would permit a 25-year TIF Districts. He further explained that the term sheet indicated that the City would contact Clear Channel to arrange for the removal of the billboards noting that two of the five Executive Sessions held by the EDA were to discuss negotiations with Clear Channel. He stated that they came to agreement with Clear Channel by mid-June. Mr. Backman stated that the development proposal, including the terms, the purchase agreement and contract for private development, are included in the packet for their review adding that this document was provided to the attendees at the public hearing held last Monday, June 20, 2005. He explained that under the proposed agreement Medtronic is paying $8.65 million to acquire the property from the City and contributing $1 million to the State Highway Fund for the reverter clause federal interest. He stated that the company would also pay the City $865,000 in park dedication fees, $670,000 for compensation pertaining to the billboard signs, to cover the city administration costs and the customary permit construction fees. He stated that the City expects to net over $5 million from the sale at closing and after the golf course debt is paid off. He stated that Ehlers and Associates, the City’s TIF financial advisor, has done a comparison of the ‘as is’ model with the Medtronic model noting that they have projected that the fund balance, as of December 31, 2033, would be approximately $7.5 million for the ‘as is’ model and $19.4 million for the Medtronic model. He noted that a graph is included with the report adding that when the models are graphed it is clear that the City is better off financially every year after the course is sold to Medtronic for the life of the proposed TIF District. He stated that the economic impacts of the project are profound for both the City and surrounding areas. He explained that it would increase the city’s tax base by 8-percent in Phase 1 and would leverage $20.5 million in State funds to reconstruct and upgrade area roads, which are used by both area residents and businesses. He stated that the city would benefit from having a premier company that is willing to spend well over $100 million in private investments in this City and garners a business partner interested in the community’s future including its’ schools. Mr. Backman indicated that there are other alternatives available noting that each of those alternatives have a greater level of risk than the current proposal adding that the long-term tax- base impact would also be less. He stated that given the positive impacts of this proposal it is recommended that the Mounds View Economic Development Authority adopt Resolution 05- EDA-203.