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Mounds View EDA January 23, 2006 Regular Meeting Page 8 City would receive the following considerations: 1. Medtronic would reimburse the City for administrative costs, estimated at $150,000. 2. Medtronic would be responsible to construct water and sewer utilities to the site that was previously the City’s responsibility. In other words, Medtronic would pay the $400,000 that the City was obligated to pay. 3. Medtronic would pay 100% of the cost to relocate all four billboards, including the previously agreed City portion, estimated at $550,000 4. If the buyout alternative has to be undertaken for the billboards, Medtronic would pay all costs associated with the four signs. 5. Medtronic agrees to provide the City up to $545,000 for the replacement of Well #4 to ensure adequate water supply. 6. Medtronic agrees to contribute $355,000 to the City’s Street Reconstruction Fund to help offset any traffic impacts on local roads due to the Medtronic project. 7. If trail costs on the former Sysco property are deemed excessive by the City, Mounds View would not be required to construct the trail and the designated funds would remain for other park uses. If Medtronic wants the trail constructed, Medtronic would pay for the trail costs in excess of $150,000. Economic Development Coordinator Backman stated staff is looking for re-affirmation regarding the proposed terms of the amended contract for Phase Two acceleration of the Medtronic CRM Campus. If the proposed terms meet the expectations of the EDA, the next step would be to present them as part of an amended Development Agreement that will be discussed by the City Council at the public hearing scheduled for February 13, 2006. Vice President Stigney asked if the $8.1 million additional project would bring in $22.9 million. He noted that the last set of minutes indicated that Medtronic was waiting for a feasibility study to get a better number to work with and asked if that has been accomplished. Economic Development Coordinator Backman stated the City has been undertaking several feasibility studies. One study was for the water and sewer extensions. He stated he has not seen a written report but was told by Bonestroo that their estimate for extension of water and sewer was $390,000. Staff had used an estimate of $400,000 as the City’s cost so the numbers are still holding relative to that. Economic Development Coordinator Backman stated it is likely that the total $355,000 would go into the street improvement fund. Vice President Stigney asked whether $22.9 million is a solid number at this time. Economic Development Coordinator Backman answered in the affirmative. President Marty stated the staff report indicates that Phase 2 is 46% of the size of Phase 1. Economic Development Coordinator Backman explained that the estimate for the building would go from $820,000 to $1.2 million, which would be approximately that percentage. President Marty reviewed that for Phase 1, Medtronic was granted $14.8 million. He noted that one-half of Phase 1 would be $7.4 million, not $8.1 million. He stated he cannot see how construction costs would be that much greater due to the fact they are being constructed at the