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Mounds View EDA February 13, 2006 <br />Regular Meeting Page 2 <br /> <br />6. CONSENT AGENDA <br /> <br />No items were removed from the Consent Agenda. <br /> <br /> A. Set a Public Hearing for Monday, February 27, 2006 at 6:00 pm to Consider <br />the Amended and Restated Development Agreement and Modification to the <br />Business Subsidy Agreement for the Medtronic CRM Project. <br /> <br /> B. Establish an Executive Session of the EDA immediately following conclusion <br />of the City Council meeting, Monday, February 13, 2006, to consider <br />negotiations relating to the possible acquisition of 2390 County Road 10. <br /> <br />MOTION/SECOND: GUNN/THOMAS. To Approve the Consent Agenda, as presented. <br /> <br /> Ayes –5 Nays – 0 Motion carried. <br /> <br />7. EDA BUSINESS <br /> <br />A. Consideration of a Modification to the Project Plan for the Mounds View <br />Economic Development Project and the Proposed Modification of Tax <br />Increment Financing District No. 5. <br /> <br />Economic Development Coordinator Backman explained the potential to accelerate Phase 2 of <br />the Medtronic CRM Headquarters in Mounds View. <br /> <br />Economic Development Coordinator Backman stated that the development agreement signed by <br />Mounds View EDA and Medtronic provides $14.8 million in TIF assistance to Medtronic to <br />implement the first phase of the three phase development. He explained that additional TIF <br />assistance may be requested by Medtronic for Phases 2 and 3. He noted that Ehlers and <br />Associates prepared a financial analysis and it is essentially the same document that was <br />approved on August 22, 2005. He stated that changes include the increase from 820,000 to 1.2 <br />million square feet of building space, an additional $30,400,000 in market value, $1.7 million in <br />new tax capacity upon project completion, and an increase in the TIF Note from $14.8 to $22.9 <br />million. He commented that the increase in the TIF Note reflects greater development costs for a <br />significantly larger initial development phase. <br /> <br />Economic Development Coordinator Backman stated that some people may wonder what the <br />benefits of accelerating the development and the benefit of having thousands of employees in <br />community are. He stated Medtronic is a unique company and opportunity for the City of <br />Mounds View. He noted that Medtronic focuses on innovation. Economic Development <br />Coordinator Backman stated that research and development leads to new technologies, <br />contributes to economic growth and enhances competitiveness. He noted the two Minnesota-