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Mounds View EDA February 13, 2006 Regular Meeting Page 3 based companies with the highest levels of research and development expenditures are 3M with $1.18 billion and Medtronic with $1.14 billion. He noted that a significant portion of Medtronic’s research and development will take place in Mounds View. He noted Medtronic fosters technical breakthroughs and plans for the long term, and Mounds View has the opportunity to be a partner in that. Economic Development Coordinator Backman stated that the benefit to Medtronic is that innovation happens when people are brought together with different disciplines. He explained this will result in better communication flow and increased efficiency. He added another benefit is a better working environment, faster response to customers and more cost effective products. Economic Development Coordinator Backman explained how the City will benefit from the project. He stated it will provide the City with certainty as to what will be built on site and when it will be built. He commented by moving up Phase 2, this part of the campus will be on the tax rolls five to six years earlier. He stated it also provides the City with an additional commercial building with over $30 million of capital investment. Economic Development Coordinator Backman added the combined Phase 1 and Phase 2 increases the City’s market value, expands the number of high paying jobs to approximately 1,400 over time, and saves the City potentially $2.7 million in utility costs, billboard buyouts and relocation costs. He stated it provides $545,000 to upgrade Well Number 4 to ensure adequate water supply for the City, and provides $355,000 for street reconstruction projects to offset potential traffic impacts. He added it provides an estimated $40,000 in annual franchise fees. Economic Development Coordinator Backman explained that the community will benefit by this project as well, such as providing the Mounds View school district with over $30 million for referendums. Economic Development Coordinator Backman noted that by having thousands of people with jobs in Mounds View, it is likely that a portion of the workforce will buy products and services in the community. He stated there is likely to be an increased number of residents in Mounds View, and this skilled work force may become involved in the City and in the schools. Economic Development Coordinator Backman stated the amended TIF plan represents the spirit of collaboration between the City and Medtronic. He stated it reflects the City’s efforts to promote thoughtful and planned business development. He stated Medtronic is committed long term to Mounds View to make the development a world class facility. MOTION/SECOND: GUNN/STIGNEY. To waive the reading and adopt Resolution 06EDA- 215 Modification to the Project Plan for the Mounds View Economic Development Project and the Proposed Modification of Tax Increment Financing District No. 5. Vice-President Stigney welcomed Medtronic to the City and added the project will be a benefit to