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Mounds View EDA January 23, 2006 Regular Meeting Page 11 referenced the June 17 memorandum from City Administrator Ulrich regarding the development proposal and terms of the purchase agreement and contract for private development proposed by Medtronic. He noted that on the issue of the $400,000 of public improvements, the memorandum states: “The City is required to install all necessary off site water and sewer line improvements necessary for the development. This includes the extension of the water main, sanitary sewer and storm water lines. It is estimated these lines will cost approximately $400,000 and the City EDA will be reimbursed through available TIF first from this district and as needed from other available TIF funds.” Mr. McCarty stated these exact words were included in the July 8, 2005 contract and then transferred into the executed agreement. He asked if Economic Development Coordinator Backman is saying that it was never settled and it could come from general funds. He suggested that the documentation says otherwise. Mr. McCarty stated the Mounds View Citizens Taxpayers Association has been following this very closely and with his records and experience, he is hearing things that do not ring true to him. He stated he thinks these issues should be clarified so there is a better relationship in the future than there has been in the past. He asked the EDA to sit down with them, with those who have served on committees, as Councilmembers and Mayors. He encouraged the EDA to sit down with residents to talk about these issues because Mounds View is still their City and while he does not want to be serving on the Council any more, he still has a distinct and real interest in the City of Mounds View. He stated that should be respected and again encouraged the EDA to sit down together and talk about it, noting he may even be able to educate Vice President Stigney about something as well. Vice President Stigney asked President Marty if he can control the meeting from the table or if the audience will continue to control this meeting as Mr. McCarty always likes to do. He noted the purpose of this agenda item is to receive information from Ehlers & Associates. President Marty asked if this can be discussed at the January 30, 2006 work session. Stacie Kvilvang, Ehlers & Associates, stated that Mr. Backman has covered most of the presentation. She stated one of the questions asked is how do Phases 1 and 2 pan out separately. As alluded to, there is $22.9 million available in TIF and $14.8 million is available and agreed to in Phase 1. Based on the $22.9 million it gives you $8.1 million as available in Phase 2 for qualified costs. She noted with side-by-side comparison that in Phase 2 there are about $24.7 million in qualified costs predominantly for structured parking but also for the relocation of the billboards and administrative fees for the Phase 2 contract. So, the $8.1 million will go to those four areas. With the $22.9 million, they are recommending that as far as qualified costs and documentation, they do it all for structured parking. Ms. Kvilvang stated if you look back at the documentation for the $14.8 million it is going toward land acquisition, utilities, site improvements, environmental, and other things. That is a much more lengthy documentation process to go through. She explained that to simplify things in Phase 2 and since the structure parking cost about $24 million, it seems right to document that for the qualified cost of $22.9 million for the tax increment. Ms. Kvilvang referenced the third page of the report that contains the Phase 1 and 2 analysis