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Mounds View EDA November 28, 2005 Regular Meeting Page 3 President Marty stated he likes the fact that it will assure Phase 2 is in Mounds View. He noted that the administrative fee from TIF for Phase 1 ranges from $41,000 to $46,000 so this could add $20,000 to $30,000 a year. President Marty stated he is concerned that with this much construction, the City’s one full time building inspector may need some help. Director Ericson noted that hiring an additional inspector may provide enough assistance so staff can focus on the Medtronic project. But, if more help is needed, staff can look at that. He explained that Medtronic plans to submit building permits in phases and built sequentially rather than dropping off 1,000 pages of plans at one time. Medtronic will time submissions so it is spread out and staff can review the plans and get to inspections. If additional staff is needed, the permit revenue would support that cost. President Marty stated the Phase 1 TIF period was extended from 8 years, by State Statute, to 25 years. He asked if Phase 2 is submitted, could it be renegotiated to get closer to the State Statutes. Director Ericson explained he is not at a point to talk about negotiated issues but this could be wrapped into the current project and if the EDA wants to consider accelerating payoff, staff could look at less of an administrative fee of the TIF generated and roll the funds back into the payoff so it is paid sooner. He noted the costs are greater to do two standalone TIF districts so maybe Phase 2 could be wrapped into the Phase 1 TIF district that is already authorized. President Marty stated the EDA supports directing staff to move forward with discussion. City Administrator Ulrich stated staff would like Ehlers to run the numbers, which will incur costs that would be reimbursed by Medtronic. President Marty stated his agreement with using Ehlers since they are the most knowledgeable with this project. 8. REPORTS A. An Update Regarding the DEED Funding Agreement for the County Road J Improvement Project City Administrator Ulrich reviewed that the EDA has previously granted staff approval to execute agreements for the $5 million grant received from the State for construction of County Road J. At this time an issue has come up that has not yet been resolved and staff wants to bring that issue to the attention of the EDA.