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Mounds View EDA February 13, 2006 Regular Meeting Page 4 taxpayers. President Marty noted that a benefit of consolidation is that it will make Medtronic much more efficient, because in the past there were five different sites that needed to be coordinated. President Marty explained if TIF is decreased to $4 million from $8.1 million, the TIF value would be $18.8 million. He explained at $80 per square foot it would be paid off in 2028, and at $100 per square foot, it would be paid off in 15.5 years. Mayor Marty pointed out that with the original cap of $14.89 million and with the additional $8.1 million, the combined TIF value would be $22.9 million. He stated the original interest was $16.9 million, and now the interest will be $21.3 million, resulting in a total of $44.2 million. President Marty noted if the City did not give Medtronic TIF, this would make the TIF district pay off that much sooner. He noted that property taxes in Phase 1 would have been $563,000 and the school districts in Phase 1 would receive $163,000 per year. He noted because it is a TIF district, it does not pay off until 2033. He stated he wished to put the project on the tax rolls to affect the citizens of Mounds View as quickly as possible. President Marty noted that he does not think Medtronic would walk away from the project, but rather they need Phase 2 right now in light of demands in cardiac rhythm management and the State putting in $20.5 million for streets and roads. He stated the State moved up County Road J 20 years ahead of schedule and it was his understanding that 35W is now on the radar map. President Marty questioned the excess increments, and suggested it is not bonding if taxes are higher and noted that it does seem to be paying off sooner. He asked if this would all go into the TIF district to help it pay off sooner and once it is paid off, if it reverts to the County Auditor for redistribution. President Marty stated that in regard to the transportation issues relating to the proposed development, the development did not review or take into consideration excess traffic on City streets. President Marty noted the fiscal disparities inside the TIF district and asked if August 1, 2007 is when the first note for the TIF district will be issued. He stated this assumes the first tax increment for the District will be in 2008, and pointed out that although the property was sold in 2005, it will not be effective until 2008. President Marty stated that he has never seen the TIF application for Medtronic Phase 1 and/or Phase 2. President Marty asked for clarification if most of the new jobs in Phase 1 were transfers, and that most of the new jobs in Phase 2 would be newly created jobs.